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2 accused of selling counterfeit slot machines
Thursday, June 11, 2009 | 4:12 p.m.
Sun Coverage
Two men have been indicted for allegedly selling counterfeit video slot machines and programs in Las Vegas.
Rudolfo Rodriguez Cabrera, 43, a Cuban national, and Henry Mantilla, 35, of Cape Coral, Fla., have been charged in a scheme to produce and sell counterfeit International Game Technology-brand video slot machines and counterfeit IGT computer programs, the U.S. Justice Department, U.S. Attorney Gregory Brower of Nevada and FBI Special Agent Steven M. Martinez of the Las Vegas office said today.
Cabrera was arrested Monday in Riga, Latvia, based on the indictment. Mantilla is scheduled to appear based on a summons in U.S. District Court for the District of Nevada on July 2, before U.S. Magistrate Judge Robert J. Johnston.
According to the indictment, returned on April 22 and unsealed Wednesday, Cabrera owned and operated a company called FE Electronic in Riga, Latvia, and Mantilla owned and operated a company named Southeast Gaming Inc., in Cape Coral.
The indictment alleges that between August 2007 and April 15, 2009, Cabrera and Mantilla conspired to make unauthorized copies of IGT video gaming machine computer programs, place counterfeit labels bearing IGT's registered trademark on computer programs, install counterfeit computer programs in IGT slot machine cabinets and then sell them all through their companies without permission of IGT, which is based in Reno.
The indictment alleges they sold IGT-marked software programs in Las Vegas.
Cabrera and Mantilla are charged in the indictment with one count of conspiracy, two counts of trafficking in counterfeit goods, two counts of trafficking in counterfeit labels and two counts of criminal copyright infringement.
If convicted of all charges, each man faces a maximum of up to 45 years in prison and $5.25 million in fines. The indictment also contains 13 forfeiture allegations that require the defendants, if convicted, to forfeit any and all counterfeit items and up to $5 million in proceeds from their alleged criminal activity.
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Where do they make counterfeit gaming machines? China?
Who in the world would buy them?
I imagine all of the legitimate casinos would deal direct with IGT, or at the very least a distributor licensed by IGT. No casino owner would risk their license on that.
These same machines can be found at your local casino with the exception the casino owners manipulate the computer chips with the blessing of Nevada Gaming Control Board.
Homer - what these men are accused of is outright theft of intellectual property. They stole IGT assests, software which requires heavy investment and development efforts as well as hardware and resold to consumer casinos as branded IGT equipment. They profitted from the labor of a legitmate producer while putting IGT and the end customer casinos at significant legal risk should the resold grey market/black market machines not have the latest code fixes as required by gaming regulations or if the machines have a significant defect rate.
Who squealed? Why would you sell them in the first place? Why go through the trouble to counterfeit a "IGT" label? Did they steal the code for the software or copy it? Anyone with an E-promer can make all the chips they want. Why copy someone elses mechanical device when you can produce something similar without fear of prosecution? You are accomplishing the same thing and it would be legal.
Ace's
The machines in question must have paid out too much money for these guys to get caught?House lost too much,and someone has to fall on the blade!