SACRAMENTO, Calif. (KTXL) — A Sacramento couple was arrested Friday on suspicion of defrauding California’s unemployment agency for over half a million dollars. 

Police say the couple, 25-year-old James Smith and 21-year-old Chyna Hill, was served a search warrant by the department’s North Gang Enforcement Team on Jan. 14.

While executing the warrant, Sacramento police found a red notebook listing over 50 Employment Development Department accounts. 

The notebook not only had EDD usernames and passwords but the names and social security numbers of those 55 people, according to police. 

“An examination of the EDD accounts revealed that Hill and Smith received over $550,000 in fraudulent EDD funds,” Police said in a press release. 

Sacramento police say they also found several assault weapons with extended magazines and handguns. Both face weapons charges but police say Smith faces an additional charge for possession as a felon.

The department also noted that Smith is a “validated gang member” with a prior conviction.

District Attorney Anne Marie Schubert claims that “in some cases, it is clear that the EDD fraud is providing a direct catalyst for the violence or funding the means to carry it out.”

Schubert’s full statement can be read below.

Unfortunately, the circumstances of this arrest, as shocking as they might be, do not represent an outlier in EDD fraud investigations. Law enforcement personnel are frequently discovering EDD fraud associated with violent criminal activity as well as drugs and weapons offenses. In some cases, it is clear that the EDD fraud is providing a direct catalyst for the violence or funding the means to carry it out,

District Attorney Anne Marie Schubert