- Lake County News reports
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Lakeport couple charged with unemployment insurance fraud scheme; illegal firearm, drugs seized
LAKEPORT, Calif. — Authorities said they have charged a Lakeport couple with numerous felony counts for operating an unemployment insurance fraud scheme.
Richard James McAulay, 56, and Michelle Darlene Curtis, 50, have been the focus of an investigation for several weeks, the Lakeport Police Department reported.
The department said that earlier this month it developed information that McAulay and Curtis were defrauding the state of California in a significant unemployment insurance fraud scheme. It also was believed that McAulay was involved with opiates including fentanyl.
Because of the complexities and additional resources needed to properly and safely investigate this case, Lakeport Police Chief Brad Rasmussen asked the Criminal Investigations Division of the Lake County District Attorney’s Office to take the lead.
Over the course of the next several weeks a detailed investigation was conducted and probable cause was developed to seek charges and a search warrant for a residence on Konocti Avenue in the city of Lakeport.
On Tuesday, Aug. 24, at about 7:45 a.m., three Lake County District Attorney’s Office investigators, a Lake County welfare fraud investigator, five Lakeport Police officers and K-9 Olin served the search warrant, police said.
No one was home at the time of the warrant service, however, authorities said McAulay drove by the location during the search and was immediately stopped and arrested.
During the search of the residence, vehicles and McAulay himself, numerous items of evidence related to the unemployment insurance fraud were located and seized, police reported.
Additionally, police recovered a Smith & Wesson Governor handgun which fires a .45-caliber round or a 410 shotgun round, and it was loaded with a shotgun round, making it a felony to possess in California because it falls within the meaning of a short barreled shotgun.
During checks of vehicles, Olin alerted on suspected narcotics which were seized and are pending analysis.
As of Friday, McAulay and Curtis have been charged with multiple counts of felony unemployment insurance fraud, felony grand theft and felony perjury for the theft of in excess of what is currently known to be $40,000 of funds belonging to the state of California.
Additionally, McAulay is charged with felony possession of an illegal firearm and being a felon in possession of a firearm due to the fact that he has suffered previous felony convictions in the state of California.
McAulay was in custody at the Lake County Jail on Friday, booking records showed.
At the time of this investigation, Curtis was in custody at the Sonoma County Jail on other charges. She will later be returned to Lake County to face her charges here, authorities said.
This investigation remains ongoing and anyone with information is asked to contact the Lake County District Attorney’s Office Investigations Division or the Lakeport Police Department.