Kmart Fraudster Mahone Gets 45 Months

HELENA, MT – A calculated fraud scheme targeting Kmart stores across eleven states, including Montana, has landed Lynada Laticia Mahone, 40, of Chicago, IL, behind bars. U.S. District Judge Sam E. Haddon handed down a 45-month prison sentence, followed by three years of supervised release, and ordered Mahone to pay $219,980 in restitution, U.S. Attorney Kurt Alme announced today.

The four-month spree, which began in September 2017, saw Mahone systematically exploiting a loophole in Kmart’s check verification process. According to court records, Mahone presented 56 fraudulent checks, falsely claiming they were issued through the federal Women, Infants and Children (WIC) program – a supplemental nutrition program. Kmart tellers, not trained to verify WIC checks, allowed the transactions to proceed.

Each successful transaction netted Mahone goods and gift cards, which she absconded with before Kmart realized the shortfall at the end of the day. Mahone wasn’t shy about maximizing her gains, often conducting multiple fraudulent transactions within the same store if the scheme worked. The total loss to Kmart across the eleven states amounted to a staggering $219,980.

Federal investigators caught up with Mahone in Tolleson, Arizona, while she was attempting to pull the same scheme at another Kmart location. A search of her purse revealed a collection of fake driver’s licenses, clearly indicating a premeditated and organized effort to deceive. Surveillance footage confirmed Mahone’s presence at Kmart stores across the country, including locations in Montana: Butte, Glendive, Helena, and Hamilton.

The investigation, spearheaded by the FBI, traced Mahone’s movements through Wyoming, Idaho, Minnesota, Washington, Oregon, Texas, Oklahoma, Utah, Nevada, and Arizona. Assistant U.S. Attorney Ryan Weldon successfully prosecuted the case, securing the conviction and ensuring Mahone is held accountable for her actions. Mahone pleaded guilty to wire fraud in December 2018.

This case serves as a stark reminder that exploiting federal programs for personal gain will not be tolerated. The Grimy Times will continue to follow federal prosecutions and expose those who prey on businesses and taxpayers. The restitution order ensures Kmart will receive some compensation for the losses incurred, though the damage to trust and operational security remains.