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$50,000 in public funds stolen as California transit employees build secret apartments

Jacob Shelton June 12, 2025

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Sign outside the state Department of Transportation's District 2 office off Riverside Drive in Redding. Caltrans

San Mateo County, California – Two former Caltrain employees who used public funds to quietly convert parts of two commuter rail stations into private residences were sentenced this week to a combined six months in county jail, concluding a case that underscores the vulnerabilities of public oversight and the often-overlooked infrastructure that supports urban transit systems.

Seth Andrew Worden and Joseph Vincent Navarro, both employed by Caltrain’s rail service contractor, were charged in March 2024 with felony theft of public funds. Prosecutors say the scheme began in 2019 when Navarro, a senior Caltrain official, directed Worden to oversee unauthorized renovations of station property. The first conversion took place at the historic Burlingame station, where office space was remodeled into a fully outfitted apartment for Navarro, complete with a kitchen, shower, heating, plumbing, and surveillance cameras — all paid for with taxpayer dollars.

To avoid triggering contract reviews or oversight, Worden allegedly kept invoices below the $3,000 threshold that would have required additional approvals. By the time the renovations were completed, the Burlingame project had cost Caltrain approximately $42,000. Navarro used the space as his primary residence until his termination in 2022.

A similar effort at the Millbrae station, involving about $8,000 in renovations, was discovered by Caltrain staff in 2020. Both conversions remained intact during the legal proceedings, with San Mateo County District Attorney Steve Wagstaffe noting that “the work was well done.”

On Monday, Worden was sentenced to 60 days in jail, one year of probation, restitution of roughly $8,000 to the Peninsula Corridor Joint Powers Board — Caltrain’s governing body — and was ordered to attend substance abuse counseling. Navarro, who was convicted by a jury in April, received a four-month sentence on Wednesday, with credit for 28 days already served, two years of probation, and a prohibition on holding fiduciary responsibilities in future employment. His restitution amount will be determined at a later hearing in August.

Caltrain has not yet decided what to do with the illegal residences. Because both stations are historic landmarks, any alterations must be approached with preservation in mind, according to agency spokesperson Dan Lieberman.

Executive Director Michelle Bouchard emphasized that the misuse of public funds “violates Caltrain policy and the public’s trust,” and affirmed that the agency “acts swiftly and decisively” when misconduct is identified.

The case, while peculiar in its details, reflects a broader truth about public infrastructure: its integrity depends not just on engineering, but on vigilance, transparency, and accountability.

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