Arrests made in massive Southern California fraud case
SAN DIEGO (FOX 5/KUSI) — A North County fraud investigation has expanded to potentially more than 100 victims after sheriff’s investigators arrested a man and a woman and seized boxes of evidence, including drugs, passports, stolen credit cards and forged documents.
Investigators arrested 44-year-old Katie Ann Rhew and 46-year-old Michael Sundstrom on Thursday after serving search warrants at Rhew’s home in Temecula and Sundstrom’s home in San Marcos, according to the San Diego County Sheriff’s Department.
Detectives say the investigation is focused on fraud, forgery and burglary.
Investigators say a surveillance camera captured Rhew during a 2024 burglary at a home in San Marcos. In that case, she was arrested two blocks from her Temecula home, where detectives said they found stolen designer bags worth about $5,000.
Investigators also said they found two packages inside a white Chevrolet Suburban that had been stolen from homes in Deluz.
Sheriff’s detectives returned to Rhew’s Temecula home Thursday as part of the larger investigation.
“Mail, credit cards, personal identifying information stolen from either a mailbox or it could have been someone’s vehicle,” Detective Brian Bentley said, describing the types of property investigators believe may have been stolen.
After searching the homes of Rhew and Sundstrom, investigators said they found boxes of evidence connected to identity theft, including forged documents, stolen credit cards and passports.
Bentley said investigators believe there could be dozens of victims throughout Southern California and Arizona.
“We are in the process of going through all of that evidence and trying to contact as many of these people as possible, so I don’t have an exact number yet,” Bentley said. “But I can say we seized a lot of evidence yesterday. There was well over 100 different individuals’ personal identifying information.”
Before their latest arrests, both Rhew and Sundstrom had been released on bail in connection with a February 2025 case in Escondido, according to court records.
In that case, they face more than 40 misdemeanor and felony charges related to alleged drug possession and the theft of firearms.
As the investigation continues, Bentley urged people to closely monitor their financial accounts and personal information to help prevent becoming victims of financial crimes.
“You really have to be on top of monitoring your online financial presence,” Bentley said. “One of the ways I tell people quite often is managing and monitoring your own bank accounts. It has to be a regular kind of a thing.”
Bail was set at about $600,000 for each suspect. They are scheduled to be arraigned Tuesday.
Copyright 2026 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.For the latest news, weather, sports, and streaming video, head to FOX 5 San Diego & KUSI News.