By DANIEL SUDDEATH
Daniel.Suddeath@newsandtribune.com
NEW ALBANY —
One of the largest and most sophisticated counterfeit operations police have ever seen in southern Indiana was busted on Thursday, and investigators believe the fake currency was being used primarily to purchase drugs.
The investigation began July 20 when police started receiving reports of people passing counterfeit bills at food marts and gas stations, Indiana State Police Sgt. Jerry Goodin said.. Reports were taken at three stores in Greenville and one in Harrison County, but the big break in the case came when fake currency was passed in Oldham County, Ky., and police received new information about possible suspects.
A search warrant was obtained and executed Thursday at Knobs Pointe apartment complex in the 2700 block of Paoli Pike. Goodin said they found $4,500 in counterfeit $10 and $20 bills along with the equipment used to produce the bills in the apartment.
Jerry L. Davey, 20, of Jeffersonville, and Johnathon A. Frantz, 18, of New Albany, were each charged on Monday with class C felony forgery.
“After speaking with the Secret Service, we believe we’ve taken out a pretty large counterfeit ring in southern Indiana,” Goodin said.
Those passing the money would target small food marts during busy times of the day. Police say the suspects have agreed to pay restitution to the victimized businesses. Over the weekend, more counterfeit money was found at a store in Clarksville.
Since many locations no longer accept $100 bills or check them closely, Goodin said thieves have adapted and now manufacture smaller bills.
“This is a significant case for this region,” said Kirk McClelland, U.S. Secret Service assistant to the special agent in charge of the Louisville Field Office.
McClelland said counterfeit manufacturers usually teach each other how to print the money. He said the money used in this case is similar in quality to the major counterfeit busts they see in Louisville.
“This is pretty much par for the area,” he said.
The money had some tell-tale signs of being fake, such as no security strip or watermark, but it might appear real without closer examination.
“At first glance, this looks real,” Goodin said.
Police believe the operation was going at least a couple of weeks before it was shut down, and further investigation revealed an unknown amount of counterfeit money had already been spent purchasing drugs.
“A lot of this counterfeit money is going to buy drugs,” Goodin said. “They were duping the dope dealers.”
Goodin said information received in this investigation has led to numerous leads in drug dealing cases, and he had a warning to drug dealers.
“You better be trembling in your shoes,” he said.
Speaking somewhat in jest, Goodin said he encourages all drug dealers to go to police and report that they were given counterfeit money. More seriously, he warned them against passing the fake bills.
“Any dope dealer who has counterfeit money, don’t try to pass it. We’re going to hunt you down and not just arrest you for passing counterfeit currency, but will try to make a case against you for dealing drugs,” Goodin said.
Davey and Frantz face two to eight years in prison if convicted.
The U.S. Attorney for the Southern District of Indiana will decide whether to seek federal charges against the two suspects.
Three arrested on drug charges in related case
In an apartment on the same floor of Knobs Pointe, police arrested three on drug charges.
Michael D. Casey, 19, of New Albany, was charged with class D felonies dealing marijuana, possession of marijuana, possession of a controlled substance and maintaining a common nuisance and class A misdemeanor possession of paraphernalia.
Woodrow W. Sulikowski, 19, and Lindsay E. Portwood, 20, of New Albany, were charged with class D felony maintaining a common nuisance and class A misdemeanors possession of marijuana and possession of paraphernalia.
As police were finishing the counterfeit investigation late Thursday night, Casey knocked on the door and began asking what was going on, according to police. Police began questioning Casey and gathered probable cause to search his apartment, which is down the hall from Davey’s.
Police uncovered approximately half of a pound of marijuana and Hydrocodone and ecstasy, along with drug paraphernalia.
The suspects in both cases are all described as being friends, although police will not say if they are otherwise connected.
Floyd County Sheriff Darrell Mills praised the cooperation of all the law enforcement agencies working together in the cases.
Anyone with information about the cases may call the sheriff’s department’s criminal investigation division at 812-948-5407 or the Indiana State Police post in Sellersburg at 812-246-5424.
HOW TO IDENTIFY COUNTERFEIT BILLS
Kirk McClelland, U.S. Secret Service assistant to the special agent in charge of the Louisville Field Office, said the federal government has spent a lot of money on color shifting ink. Tilt any bill $10 or higher and it should change colors from black to green or copper to green. For $5 bills and higher, there should be a security thread, or plastic strip, running from top to bottom, which states USA plus the denomination and is visible when held to up to the light. McClelland said the most difficult feature to replicate is the watermark which should match the image of the portrait of the person shown on the bill.
These features were all added in the 1990s, so for older bills, it is easiest to compare to another bill of the same denomination and series. Also look for colored strands in the paper since all U.S. bills have tiny red and blue fibers embedded in the paper.
