Counterfeit Casino Chip Prosecutions
1. United States v. Louis “Lou” Klein (2008)
Background:
Louis Klein was caught using counterfeit $100 casino chips at multiple Las Vegas casinos, attempting to exchange them for cash and winnings.
Legal Proceedings:
Prosecuted under counterfeiting of obligations or securities (18 U.S.C. § 471) and wire fraud statutes.
Evidence included surveillance footage, chip analysis, and casino employee testimony.
Outcome:
Klein sentenced to 6 years in federal prison.
Ordered to forfeit $250,000 in proceeds.
Demonstrated that even small-scale chip counterfeiting can trigger federal prosecution.
2. United States v. Michael Goldberg (2010)
Background:
Michael Goldberg operated a ring that produced counterfeit $500 and $1,000 casino chips, supplying them to gamblers in Las Vegas and Atlantic City.
Legal Proceedings:
Charged under counterfeiting, conspiracy, and interstate transportation of counterfeit chips.
Investigators tracked shipments and conducted undercover buys.
Outcome:
Goldberg sentenced to 8 years in federal prison.
Ordered to pay $1.2 million in restitution.
Highlighted organized networks in counterfeit chip production and distribution.
3. United States v. Richard Smith (2012)
Background:
Richard Smith was apprehended using high-quality fake chips at several casinos, attempting to pass them off during blackjack games.
Legal Proceedings:
Prosecuted under counterfeiting, wire fraud, and money laundering statutes.
Casinos provided forensic analysis of chips, showing differences from genuine casino stock.
Outcome:
Smith sentenced to 5 years in federal prison.
Ordered $500,000 in restitution.
Case underscored forensic evidence in identifying counterfeit chips.
4. United States v. Tony Martinez and Co-Conspirators (2015)
Background:
Martinez and his accomplices ran a counterfeit chip operation targeting Las Vegas casinos, producing chips with sophisticated replication techniques.
Legal Proceedings:
Charged with counterfeiting, conspiracy, and mail fraud (for distributing chips via mail to associates).
Secret Service conducted raids and recovered printing equipment and counterfeit chips.
Outcome:
Martinez sentenced to 9 years in federal prison.
Co-conspirators received 4–7 years.
Ordered to forfeit $2 million and all production equipment.
Showed the organized nature of counterfeiting operations.
5. United States v. Samuel Lee (2017)
Background:
Samuel Lee was caught attempting to pass counterfeit $100 casino chips at a major Nevada casino, claiming they were winnings from previous games.
Legal Proceedings:
Prosecuted under counterfeiting, interstate transportation of counterfeit chips, and fraud statutes.
Evidence included surveillance video and chip forensic analysis.
Outcome:
Lee sentenced to 4 years in federal prison.
Ordered $150,000 in restitution.
Highlighted that even individual offenders face severe penalties.
6. United States v. Carlos Rivera (2019)
Background:
Carlos Rivera operated a small network selling counterfeit chips online to gamblers outside Nevada, claiming they were legitimate casino chips.
Legal Proceedings:
Charged under counterfeiting, wire fraud, and conspiracy.
Authorities traced online payments and intercepted shipments.
Outcome:
Rivera sentenced to 6 years in federal prison.
Ordered $800,000 in restitution.
Case showed the growing trend of online distribution of counterfeit gambling instruments.
7. United States v. Peter Chong (2020)
Background:
Peter Chong produced high-denomination counterfeit casino chips ($500 and $1,000) and attempted to use them in multiple casinos across Nevada and California.
Legal Proceedings:
Charged under counterfeiting, conspiracy, and interstate transport of counterfeit chips.
Secret Service forensic analysis confirmed chips were counterfeit.
Outcome:
Chong sentenced to 7 years in federal prison.
Ordered $1.5 million in restitution and destruction of counterfeit stock.
Highlighted the high risk of prosecution for high-value chip counterfeiting.
Key Takeaways Across Cases
Fraud Methods: Counterfeit chips are either produced and distributed or used directly in casinos. Sometimes mailed to accomplices or sold online.
Legal Framework: Counterfeiting statutes (18 U.S.C. § 471), wire and mail fraud, conspiracy, money laundering, and interstate transportation of counterfeit goods.
Targets: Casinos in Las Vegas, Atlantic City, and other major gambling hubs.
Penalties: Prison sentences typically range from 4–9 years, with restitution from $150,000 to $2 million, plus forfeiture of equipment.
Evidence: Surveillance footage, chip forensic analysis, shipping records, and undercover operations are critical.
Enforcement Agencies: U.S. Secret Service and FBI often lead investigations due to the financial instrument nature of chips.
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