ID THEFT TRIGGERS FIVE-STATE INVESTIGATION.

Byline: Greg Botonis Staff Writer

PALMDALE - A Lancaster woman's arrest on suspicion of identity theft sparked an investigation that has spread across at least five states and turned up hundreds of thousands of dollars in fraudulent checks, officials said.

Michele Wagner, 30, is believed to have obtained personal bank account information from an employee at a Kern County bank who is also believed to have supplied similar information to other people across the United States.

``This was a really good case,'' said Det. Dan Gordon of the Palmdale sheriff's station. ``But this thing has really started to take on a life of its own. It's getting bigger and bigger.''

Wagner, who is believed to have forged checks totaling tens of thousands of dollars on about 50 separate bank accounts, was released on $20,000 bail. A court date has not yet been set, officials said.

An ex-convict, Wagner was arrested after an Acton school teacher reported receiving a bank statement and returned checks for more than $1,400 in payments he never made. One of the checks on the back bore a thumbprint - taken at an Antelope Valley Mall clothing store - that turned out to be Wagner's, Gordon said.

The former bank employee has not been charged with a crime, but is under investigation by federal authorities, Gordon said. Investigators believe computer disks containing bank account information were sold to people all over the country. Some checks forged with the use of the information were cashed at Las Vegas casinos.

Wagner is suspected of writing checks at stores from Kern County to Pasadena. She often visited the same stores several times using different names, Gordon said.

``This is the kind of information (thieves) have to act on right away,'' Gordon said. ``As soon as the account holder sees the errors, you're done. You can't write on that account again.''

Wagner was identified as the forger after she allegedly wrote a check on the schoolteacher's account at the Antelope Valley Mall's No Fear store, which requires all check writers to place a thumbprint on the back of each check.

A computer check linked the thumbprint to Wagner, who had spent time in prison in 2002 for forging checks.

Taking customers' fingerprints on checks is becoming more widely used but is still far from common in major stores and retail chains.

``That's what I want everyone to understand about this case,'' Gordon said. ``It may be inconvenient, but it is a safety precaution that should be used by every retailer in the Antelope Valley. There's no file for your thumbprint. If the check clears, there's no problem. If it's a fraudulent check, we'll come and get you. It protects everyone but the criminal.''

Gordon investigated Wagner for more than a month before gathering enough evidence to obtain a search warrant for her Lancaster home. Inside were found receipts, fraudulent checks, identification cards with her photo but others' names and computer equipment and laminating machines used to make the documents, as well as items purchased with the fraudulent checks.

Deputies also seized several stolen bicycles, a pistol and methamphetamine. Also arrested was a parolee who had been on the run for several months. The bicycles, pistol and drugs were believed to belong to the parolee and a second roommate, who was also arrested.

Gordon said he had been getting flooded with calls from people who have been victims of fraudulent checks. He said that is unnecessary because he has a list of names of all the forgery victims and has been in contact with most.