The California Department of Fish and Wildlife officers received a report showing people taking a baby deer and keeping it in a dog crate.
Investigators said the suspects admitted to holding the fawn in the cage for more than three weeks.
One of the suspects was issued a citation and could face jail time, but the investigation remains ongoing.
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Officials say the fawn was taken to a wildlife rehabilitation facility for care and will be released back into the wild when it is bigger and able to care for itself.
California wildlife experts have been urging the public not to pick up young deer they find alone in the wild, and the CDFW says it is illegal and unethical to keep deer in your personal posession.
They say "fawn-napping" calls happen every spring and summer, when rehabilitation facilities are called about fawens that have been taken from the wild by residents.