CLEARLAKE, Calif. – A case that began with a Clearlake woman's attempt to pass a forged check has resulted in her arrest and led investigators to discover evidence of hundreds of identity theft victims.

Clearlake Police Sgt. Travis Lenz said officers arrested Kelly Rae Morales, 37, of Clearlake, on a host of felony charges related to forgery and identity theft.

At 5 p.m. Friday, Dec. 11, Clearlake Police Officer Michael Dietrick was contacted by Lakeport Police Officer Jason Fisher, who was investigating Morales on allegations of attempting to cash a forged check at A-1 Check Cashing in Lakeport, according to Lenz's report.

Lenz said Officer Fisher requested Officer Dietrick attempt to contact Morales in regard to his investigation.

Dietrick had prior contacts with Morales and was aware of her current address in the 3600 block of Sycamore Street in Clearlake, Lenz said.

Lenz said Dietrick responded to Morales’ address and, once on scene, discovered a vehicle which had been previously reported stolen through the Clearlake Police Department, parked in the driveway. Dietrick requested additional units to the scene at that time to assist him.

While Dietrick was awaiting the arrival of other units, Clearlake resident William Darnell Shaw II, 32,  exited the residence. Lenz said Dietrick had Shaw walk to his location and detained him in handcuffs at that time, due to the stolen vehicle being located in the driveway.

After Dietrick detained Shaw, Morales exited the residence and Dietrick detained her and placed her in handcuffs as well, Lenz said.

During a search of Shaw’s person, Dietrick found crack cocaine packaged for the purpose of sales, in 59 individual bags. Lenz said the total weight of the cocaine was in excess of 34 grams, having an approximate street value of $1,100.  

When asked, Morales consented to a search of her residence by officers. Lenz said additional Clearlake Police officers arrived on scene and searched the residence.

During a search of the house, multiple people were located inside. Lenz said one of the subjects contacted was Clearlake resident, Rocky Rayfield. A records check of Rayfield revealed an outstanding warrant for possession of narcotics.

Officers also located numerous items during the detailed search which linked Morales to forgery, manufacturing false checks, possession of identification to commit forgery and manufacturing false identification which was used to commit fraud, Lenz said.

In addition to those items, Lenz said the forged check which Morales attempted to cash in Lakeport Police Department’s investigation was located, and in Morales’ bedroom officers found methamphetamine and drug paraphernalia.

When questioned, Morales admitted to possessing the located evidence for the purposes of fraud and identity theft, Lenz said.

Lenz said Dietrick's investigation has led to the identification of more than 600 victims of identity theft.

Morales was booked into the Lake County Jail on charges of forgery, manufacturing false checks, possession of identification to commit forgery, identity theft, identity theft with prior convictions, forging an official seal, possession of false checks, manufacturing false identification, possession of narcotics and possession of drug paraphernalia, Lenz said.

Her bail was set at $15,000 and she is tentatively scheduled to appear in court on Feb. 9, according to her booking sheet. Jail records show she has posted the required portion of bail and been released.

Shaw was booked into the Lake County Jail on a charge of possession of narcotics for the purposes of sales, with bail set at $25,000. He also is due to appear in court on Feb. 9, and has since posted bail and been released, according to jail records.

Rocky Rayfield was released at the scene on a citation for his warrant, Lenz said.

Lenz said the investigation is ongoing and has been turned over to the Clearlake Police Department Investigation Unit.

Anyone with information regarding this case can contact Det. Elvis Cook at 707-994-8251, Extension 315.