Morgan Hill Police believe they may have busted a ring of
counterfeiters responsible for spending fake $20 bills all over
town in recent weeks. Gerald Reynolds, 27, and Benjamin Garcia, 30,
both of Morgan Hill, were taken to Santa Clara County Jail and face
charges of possession of counterfeit currency.
Morgan Hill Police believe they may have busted a ring of counterfeiters responsible for spending fake $20 bills all over town in recent weeks.
Gerald Reynolds, 27, and Benjamin Garcia, 30, both of Morgan Hill, were taken to Santa Clara County Jail and face charges of possession of counterfeit currency.
Police discovered the counterfeit ring operating out of Extended Stay America hotel on Jarvis Drive after finding four $20 counterfeit bills in Reynolds’ possession. At approximately 2pm Wednesday, MHPD Officer David Ray recognized Reynolds walking in the Tennant Station shopping center. Ray, who knew Reynolds had a police record and was subject to search based on terms of his probation, stopped the suspect for questioning. While performing a search on Reynolds, Ray found $80 worth of fake money in his wallet.
“Officer Ray recognized him from prior contacts and knew he was on searchable probation,” MHPD Cmdr. Terrie Booten said.
After taking Reynolds into custody, police searched his hotel room and found more counterfeit currency.
In the room, police also arrested Reynold’s girlfriend, Adrianne Esparza, 28, of Morgan Hill, for possession of drug paraphernalia. She was released with a citation.
During the search, police learned Reynolds was also associated with another room rented at the hotel. When they searched the second room, police found Garcia, who was wanted on an outstanding bench warrant, and a computer and printer they believe was involved in the counterfeit operation.
“Once officers were in Mr. Garcia’s room, they discovered a small, computer-based counterfeiting operation predominantly involving $20 bills,” Booten said. “All the property related to the counterfeiting operation was seized.”
Booten said police believe the suspects could be the same people responsible for spending counterfeit bills found at several Morgan Hill businesses over the last few weeks. According to police reports, the Cochrane Plaza McDonald’s reported receiving several counterfeit bills on July 22 and Panda Express also received a fake $20 bill on Aug. 2.
The manager of the McDonald’s, Miguel Quintero, said the experience in July caused the restaurant to change its policy.
“It happened three days in a row,” Quintero said Friday. “Believe me, after that, we started checking every bill. Before receiving those bills in July, we were only checking the big bills.”
Quintero said the restaurant uses a special pen that identifies counterfeit bills.
“I am very glad the police found the people making the bills, if they are the ones who are spreading them,” he said.
It’s possible the bills were passed locally, Booten said.
“We are investigating the possibility that the $20 bills lately appearing in local businesses may have come from this operation,” she said. “We are still looking into this.”
The discovery of the counterfeit ring may reduce the number of fake bills showing up in Morgan Hill businesses, Booten said.
“That’ll probably impact it,” she said. “There have been some sporadic cases in South County where counterfeit bills have been passed, so we’re also working with other agencies.”
If someone receives a fake bill, of any denomination, said Booten, it should be reported to the police. It is unlikely, she added, because of the many hands the bill has passed through that any action can be taken, even if the bill is mistakenly passed again by the person who received it.
The computer involved in the operation was taken by police for evidence, as well as folded sheets of counterfeit $20 bills, totaling more than $500, plus an uncut sheet of counterfeit $10 bills and a bag of shredded counterfeit money.
Officers did not find a large stockpile of supplies for possibly printing more money, but they did find some paper.
“They had purchased a pack of resumé paper that they were apparently using as a basis to print the bills,” Booten said.
The investigation is continuing, Booten said, and other charges may follow. If convicted of counterfeiting, Reynolds and Garcia could face up to four years in state prison.
