A Southern California woman has been sentenced to more than two years in federal prison for orchestrating a large-scale COVID-19 unemployment fraud scheme and illegally obtaining government benefits through multiple fraudulent actions.
Lizette Berrios Lathon, 48, of Moreno Valley, was sentenced on July 17, 2025, to 25 months in federal prison and ordered to pay $1,061,667 in restitution, according to the U.S. Attorney’s Office. She carried out the scheme with her husband, Kenneth Andrew Lathon, 50.
COVID-19 Relief Fraud Scheme
Federal prosecutors say Lizette and Kenneth exploited the expanded unemployment insurance benefits made available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act during the early days of the pandemic.
Between 2020 and March 2021, the couple filed dozens of fake unemployment claims with the California Employment Development Department (EDD), using personal information stolen from clients of Lizette’s tax preparation businesses.
Key details of the scheme include:
- 44 fraudulent unemployment insurance claims filed
- Approximately $998,630 stolen through COVID-19 relief funds
- Stolen names, Social Security numbers, and other personal information were used
- EDD debit cards were sent to addresses controlled by the Lathons
- Funds were withdrawn at ATMs and spent on personal items
Fraud Against the Railroad Retirement Board
In addition to the COVID-19 fraud, Lizette also stole benefits while employed by Amtrak, where she worked from 2000 to 2021. Between September 2014 and January 2020, she submitted forged medical documents to claim sickness benefits from the Railroad Retirement Board, falsely stating she was under treatment for pain and anxiety.
Through this separate scheme, Lizette fraudulently collected $63,047.
Tax Business Tied to Identity Theft
Lizette operated at least three tax preparation businesses in Los Angeles and Moreno Valley. Prosecutors say she used information obtained from clients of those businesses to file the fake unemployment claims during the pandemic.
Guilty Pleas and Sentencing
In November 2022, Lizette pleaded guilty to:
- Conspiracy to commit mail fraud and wire fraud
- Aggravated identity theft
- Wire fraud
Her husband, Kenneth, also pleaded guilty to similar charges, including:
- Conspiracy to commit mail fraud and wire fraud
- Aggravated identity theft
- Unlawful possession of a firearm by a convicted felon
In July 2024, Kenneth was sentenced to 54 months in federal prison and ordered to pay $998,630 in restitution. During the investigation, authorities also recovered a .22-caliber rifle and 12-gauge shotgun in his possession, despite his prior felony convictions for theft, cocaine possession, and fraud.
Both defendants are now serving federal prison sentences for their roles in one of the many fraud cases tied to pandemic relief funds.
