Forged bills linked to pair

A Costa Mesa pair accused of using counterfeit $50 and $100 bills in three cities, including Huntington Beach, pleaded not guilty in court Tuesday, following a months-long investigation by police and federal authorities, officials said Wednesday.

Jacques Delia, 43, and Sheila McCarthy, 41, pleaded not guilty to numerous counts of burglary, conspiracy to commit a crime and forging public money.

Over the last several months, Costa Mesa police noticed a rise in counterfeit bill incidents. With the help of the Secret Service, authorities say they traced the money back to Delia and McCarthy.

Friday, police went to two homes in Costa Mesa, one on Java Road and another on Coriander Street. While officers searched one of the homes, Delia fled in a white cargo van, police said. After a brief chase, Delia led police back to the Java Road residence, where they arrested him. Inside, investigators said they found drugs, a semi-automatic rifle, a shotgun and equipment for forging money and driver’s licenses. McCarthy was arrested at the Hotel Huntington Beach, where she worked as a manager.

Police have linked nearly 20 counterfeit bills to the pair, which were made from washing $5 bills with chemicals and reprinting them in the larger denominations. Police pointed out that while the bills look real, the permanent water mark showing Abraham Lincoln’s face cannot be erased. Police are looking for a third suspect, 33-year-old Diana Gordon, who authorities said is a part of the group and used the counterfeit money to make purchases at Walmart in Huntington Beach.

According to prosecutors, Delia used counterfeit cash in August to pay for a dental appointment in Huntington Beach, and McCarthy bought clothes at a No Rest For Bridget store. The clothing retailer has stores in Costa Mesa and Huntington Beach.

The two are also accused of identity theft. Prosecutors claim the two used fake driver’s licenses and others’ personal information during their crimes. Authorities also found credit card forgery equipment and martial arts weapons in the pair’s homes.

Delia was out on bail from an arrest in February by Orange County Sheriffs. Authorities then were also armed with a search warrant when they said he drove away. When police pulled him over, he began arguing with officers, said Jim Amormino, an Orange County Sheriff’s Department spokesman.

When Delia refused to take his keys out of the car’s ignition and they went to do it for him, he reached for his .22-caliber handgun holstered at his side, police said. Police wrestled the loaded weapon away and arrested Delia, Amormino said.

Delia was charged with resisting police, possessing a deadly weapon, felony drug possession of methamphetamines and marijuana, possessing forgery-making equipment and second-degree burglary. Prosecutors say Delia also owned a set of nunchakus, an illegal martial arts weapon.

JOSEPH SERNA may be reached at (714) 966-4619 or at joseph.serna@latimes.com.