Two Penn Valley women were arrested at their home in connection with an identity theft and fraud ring spanning several counties, Grass Valley police said Friday.

Katherine Anne Cameron, 53, remained in jail Friday afternoon in lieu of $10,000 bail, arrested on suspicion of possessing a controlled substance. She likely will be charged with fraud pending the results of a police investigation into her connection with the identity theft ring, said Grass Valley Police Capt. Rex Marks.

Also arrested was Daneen Margaret Carsella, 41, on suspicion of vehicle theft and being under the influence of a controlled substance.

Carsella posted bond on $11,000 bail Thursday night, according to jail records. Carsella also may be charged with fraud after police wrap up their investigation, Marks said.

Grass Valley police launched their investigation into the alleged theft ring March 3, when they received an report of a bad check written to Big 1 Appliance on Sutton Way in Grass Valley, Marks said.

Police determined Campton and Carsella borrowed the identity of a woman from Acampo, and they allegedly wrote several bad checks to businesses in the areas of Grass Valley, Nevada City, Auburn and Folsom, he said.

The woman bought home appliances, toys and groceries, he said. It appeared they were using the merchandise and had not sold it.

The amount of fraudulent activity exceeded $13,000, Marks said.

Officers from Grass Valley police, the Nevada County Sheriff's Office, Nevada City Police Department and the Folsom Police Department served a search warrant on the women's' Penn Valley home Thursday.

Police seized evidence indicating the women had been writing bad checks and producing false California driver's licenses, Marks said. Evidence of more victims also was found, he added.

A car stolen from Stockton also was recovered during the search, Marks said, as well as small amounts of drugs, which appeared to be meant for personal use.

The women appear to be part of a larger identity theft ring involving multiple people, spanning several counties in the region, he said.

Police have identified more suspects allegedly involved in the ring, none of whom reside in Nevada County, Marks said.

To contact Staff Writer Robyn Moormeister, e-mail rmoormeister@theunion.com or call 477-4236.