CALIFORNIA – Former Amtrak service attendant Lizette Berrios Lathon, 48, of Moreno Valley, has been sentenced to 25 months in federal prison for orchestrating a scheme that defrauded nearly $1 million in COVID-19 unemployment aid and an additional $63,000 in sickness benefits. The U.S. Department of Justice announced the sentence on July 17, also ordering her to pay $1.06 million in restitution.
From 2014 to September 2022, Lathon worked for Amtrak while also running three tax preparation businesses: Miracle Tax Service in Los Angeles, and Hardcore Taxes and LL Taxes in Moreno Valley.
Lathon and her husband, Kenneth Lathon, exploited the expanded COVID-era benefits under the 2020 CARES Act, which provided assistance to non-traditional workers like the self-employed and independent contractors.
She submitted fraudulent unemployment insurance (UI) claims to California’s Employment Development Department (EDD) using stolen personal information from former tax clients—many of whom had never even lived in California. Lathon also inflated incomes to maximize the benefit payouts.
EDD debit cards were issued in the names of these individuals but sent to addresses connected to Lathon’s family. The couple used the cards for ATM withdrawals and retail spending.
Between spring 2020 and March 2021, the Lathons filed at least 44 false unemployment claims, leading to approximately $998,630 in losses. Additionally, Lizette Lathon collected over $63,000 in fraudulent sickness benefits from the Railroad Retirement Board by filing fake medical claims from 2014 to 2020.
In November 2022, she pleaded guilty to conspiracy, wire fraud, and identity theft.
Her husband, Kenneth Lathon, who has prior felony convictions for theft, drug possession, and fraud, was also sentenced in July 2024 to 54 months in prison. He pleaded guilty to similar charges, including illegal possession of firearms, and was ordered to repay $998,630.
