New details in the case against Christian Lusardi, the alleged mastermind behind the introduction of counterfeit chips at the first tournament of the recent Borgata Winter Poker Open, have emerged that show he was on the radar of federal authorities for much more serious crimes.
According to Jennifer Bogdan of the Press of Atlantic City, documents released by the Department of Homeland Security allege that Lusardi was under their surveillance for 18 months for his part in selling bootlegged DVDs. That pursuit, the DHS contends, saw Lusardi earn nearly $1 million as he sold the DVDs at various pawn shops and flea markets around the North Carolina area. Lusardi is being charged in federal court with various crimes, including copyright infringement, after 37,500 DVDs were found in his home in Fayetteville.
The DHS was thorough with their investigation, according to an affidavit filed by Special Agent Bryan Moultis of the DHS. The feds tracked shipments that were sent from China to Lusardi’s home in Fayetteville as well as other post office boxes and addresses throughout the state of North Carolina. Using this information, federal authorities obtained an arrest warrant for Lusardi and found the bootleg DVDs in his home.
It seems that the bootlegging operation was also the genesis of the idea for the counterfeit chip scam that Lusardi allegedly started approximately six months ago. Authorities received reports from Lusardi’s ex-wife (unnamed in the reports) who stated in an affidavit to the authorities that Lusardi had received several packages from Hong Kong that apparently included the chips and the bootleg DVDs. Weeks before the tournament in Atlantic City, Lusardi received packages that the ex-wife described as “plastic chips” and that Lusardi used his daughter to help construct the counterfeit chips.
Lusardi’s current girlfriend also reported to authorities about those chips. That girlfriend reported that Lusardi mailed a package that allegedly contained the counterfeit chips to himself at Harrah’s Resort in Atlantic City approximately two weeks before the opening tournament of the Borgata Winter Poker Open was to be played.
Furthermore, Lusardi apparently came up with the scheme in July 2013. Authorities interviewed a man by the name of Shaheim Sheridan, also of Fayetteville, who says he was approached by Lusardi with the idea of the counterfeit chip scam. While Sheridan admits to hearing Lusardi out regarding his plan, he refused to take part in it.
Bogdan reports that Lusardi is still in custody at the Atlantic County Justice Facility in New Jersey, facing charges that include rigging a publicly exhibited contest. His bail is currently set at $300,000 which, because of the gaming charges he faces, he must provide all of instead of the usual 10%.
Lusardi was caught in the scam when he admits he “panicked” and flushed about 2.7 million of the counterfeit chips into his commode in his Harrah’s hotel room (800,000 of the counterfeit chips – 160 of the 5000 denomination – were found in action at the Borgata after investigation by tournament officials). This caused a massive backup in the plumbing and, once the chips were found by Harrah’s custodians, the dominoes quickly fell, tracing the disposal back to Lusardi’s room. He was arrested January 24 at another motel in Atlantic City.
Event #1 of the 2014 Borgata Winter Poker Open was expected to be a huge event, especially since it guaranteed a $1 million prize pool for the minimal $500 buy in. The event, which needed 2000 players to make the guarantee, blew past that in drawing over 4000 runners. Once the counterfeit chips were found to be in the tournament, however, it was suspended with 27 players left; New Jersey gaming authorities are still investigating the case and no decision has been made as to how the tournament will conclude.
