The rapper, whose real name is Charles Tony Williamson, was taken into custody along with five other people on Wednesday.
Manhattan Beach police say the arrests were made at seven locations.
During the course of the investigation, authorities learned that Williamson was on pretrial release after being indicted in Washington state on wide-ranging fraud charges.
He and the other suspects could face other charges in connection with the alleged local operations, including bank fraud, aggravated identity theft and fraud in connection with computers, access device fraud, use of stolen credit card accounts, receiving stolen property and conspiracy.
Authorities say those operations were taking in nearly $20,000 per month.
The others arrested along with Williamson include Dwanna LaShaun Franklin of Torrance, Diana Lynn Waller of Hawthorne, Rhazon Zaki Smith of Hawthorne, Reiona Marie Cage of Inglewood and Reiona Marie Cage of Los Angeles.