Two arrested in Iowa City check cashing scheme

IOWA CITY - Two Iowa City residents have been arrested in connection with a fake check cashing scheme.

According to criminal complaints, 22-year-old Melanie D. Lane and 27-year-old Rashaud L. Lee were given fake checks that had been made out to them. The checks were made by a check maker not identified in the criminal complaints. Police said Lee and Lane were both instructed to cash the checks and give 50 percent of the cash to the check maker.

Lee cashed a check for $437.04 at a Mexican bakery on Sept. 3 and returned to the bakery on Sept. 4 to cash a check for $739.43, for a total of $1,176.47. Lane successfully cashed a fraudulent General Mills paycheck for $427.90 on Sept. 3, but was stopped when she tried to cash a check for $727.90 when the clerk suspected fraud and seized her ID and the check and notified police.

Police said Lane also took the additional step of reporting her ID stolen from her vehicle before she cashed the checks so she could claim she was the victim of identity theft. Lane did try to say her identity had been stolen, but police said she was seen on video cashing the fake checks.

Both Lee and Lane admitted to their actions, police said. Lee also gave police additional information on the check cashing scheme and other suspects. Lee now faces one count of second-degree theft, a Class D felony punishable by up to five years in prison. Lane faces charges of fourth-degree theft, a serious misdemeanor; and making false reports to law enforcement, a simple misdemeanor. She faces more than one year in jail.