Check kiting foiled at car dealership

WAUPACA — Morgan Kathleen Derby, 28, of Neenah, faces multiple felony and misdemeanor charges after allegedly attempting to purchase a vehicle with a fraudulent check while under bond conditions that prohibited her from possessing checks.
According to the criminal complaint, she was charged with one count of issuance of a worthless check for more than $2,500, one count of felony bail jumping, two counts of misdemeanor bail jumping, and operating a motor vehicle without a license.
Waupaca police responded to a fraud call at Petersen Chrysler Dodge Jeep Ram on March 24. A salesman told officers that Derby attempted to buy a 2026 Jeep Compass Limited using a check for $39,010. The dealership contacted Wells Fargo and confirmed the account had insufficient funds.
The salesman alerted authorities after searching Derby’s name on a public court database and discovering a bond condition from a prior case that stated she must “not use or possess any checks.”
Derby remained adamant that she had the funds but claimed she could not access her bank account on her phone because a security code was being sent to her computer. She also mentioned a job interview the following day and her need to “stay out of trouble.”
Waupaca County Dispatch confirmed Derby was currently on a signature bond with a special condition barring check possession. Upon her arrest, police searched Derby’s wallet and found a checkbook containing another check made out to a different auto dealership in Clintonville.
Security footage from the dealership showed Derby arriving and exiting the driver’s seat of a vehicle. A subsequent records check revealed she does not have a valid driver’s license and was previously convicted for the same violation in March 2025.
Court records indicate Derby has been arrested four times in three different counties for check-related fraud since Feb. 23, 2026.
She currently has open cases in Winnebago, Fond du Lac, and Sheboygan counties.
If convicted of the Class I felony for the worthless check, Derby faces up to three years and six months in prison and a $10,000 fine.