CLEARLAKE – On Wednesday Clearlake Police arrested several subjects alleged to have been involved with a scheme to create and pass fake checks to local merchants.

Lt. Mike Hermann of the Clearlake Police Department reported Thursday that officers arrested Jackie Merlean Smith, 20, and Shirley Ann Ellis, 46, both of Clearlake; and Luther James Ellis, 44, and Felicia Nicole Johnson, 28, both of Phoenix.

Hermann reported that officers were dispatched to A-1 Check Cashing on Olympic Drive shortly before 1 p.m. Wednesday on the report of a female subject – who turned out to be Smith – attempting to pass a fraudulent payroll check.

Store employees confronted Smith about the check, Hermann said, and she then allegedly claimed she had been forced to cash it by three subjects who were waiting, with a gun, in a nearby vehicle.

When police officers arrived at the scene, the vehicle – with Luther Ellis, Shirley Ellis and Johnson inside – drove out of the parking lot and attempted to drive away down Olympic Drive, Hermann reported.

He said police used a high-risk car stop to halt the vehicle on Olympic Drive near Redwood, where they detained the three suspects, who were unarmed.

Inside the car, officers found a laptop computer and printer, said Hermann, as well as several blank and printed checks. There also were several items of merchandise in the vehicle including MP3 players and cameras still in their original packaging.

Based on the investigation, Hermann said officers couldn't confirm Smith's story and all four subjects were arrested, transported to the Lake County Jail and booked.

All four are charged with conspiracy to commit a crime, burglary and forgery, according to Hermann.

The US Marshal's Service also was looking for Luther Ellis and Johnson, who are wanted on similar charges in other states, Hermann said.

On Wednesday Clearlake Chamber of Commerce Executive Director Lori Peters issued a merchant alert as part a business watch program the chamber is coordinating with the Clearlake Police Department to warn businesses about the fake check passing.

All of the suspects remain in custody, with Luther Ellis and Johnson being held on no-bail warrants, according to jail records. Shirley Ellis, whose occupation is listed as a homemaker, is being held on $20,000 bail. Smith, who is unemployed, also remains in custody on $20,000 bail.

Hermann asks anyone with additional information about these subjects or crimes to contact Sgt. Brenda Crandall at the Clearlake Police Department, 707-994-8251.

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