An East Boston man and his sister have been arrested and arraigned in connection with using fake identities to create counterfeit checks and steal more than $120,000 from auto auction houses around the state, Massachusetts Attorney General Martha Coakley said today.   

Amarildo Silva, 30, was arraigned on charges of possession of counterfeit notes, identity fraud and forging registry documents.  Edna DaSilva, 24, was arraigned on charges of identity fraud and forging registry documents. Both pleaded not guilty during their arraignment in East Boston District Court today.

 Silva and DaSilva were arrested yesterday morning at their East Boston residence by Massachusetts State Police assigned to the attorney general’s office with assistance from the Governor’s Auto Theft Strike Force (GATSF). 

Earlier this month, the attorney general’s office began an investigation after the matter had been referred by the GATSF.  Authorities allege Silva defrauded the auto auctions in Lynn, Quincy, N. Dighton and Framingham by using a fake identity and creating counterfeit checks.  Silva had done business at the auctions. 

Investigators said Silva created counterfeit copies of the legitimate checks of the auto auctions, issued checks to himself and deposited these checks into bank accounts he held at various banks throughout the state.  Silva allegedly made withdrawals totaling more than $120,000 from the banks.  Several of the banks noticed that some of the checks were counterfeit and froze Silva’s accounts.

Investigators said after the bank accounts had been frozen, Silva brought DaSilva to a bank to open an account in the name of a fake landscaping company. DaSilva allegedly used a fake identity to try and open the new bank account.

Following today’s arraignment, Judge Robert Ronquillo ordered Silva to be held on $200,000 bail.  DaSilva was ordered to be held on $50,000 bail.  Both are due back in court on Sept. 17 for a pre-trial hearing.