Christian Lusardi, 43, of Fayetteville, N.C., pleaded guilty today to charges of second-degree trademark counterfeiting and third-degree criminal mischief before Superior Court Judge Bernard E. DeLury Jr. in Atlantic County. Lusardi was indicted on July 8 by an Atlantic County grand jury. Under the plea agreement, the state will recommend that Lusardi be sentenced to five years in state prison on the trademark counterfeiting charge and three years in state prison on the criminal mischief charge, with the two sentences to run concurrently. In addition, Lusardi will be required to pay restitution of $463,540 to the Borgata to cover revenues it lost on the poker tournament and $9,455 to Harrah’s Casino Hotel to pay for the plumbing damage he caused with the poker chips. That damage is the basis for the criminal mischief charge. Judge DeLury scheduled sentencing for Lusardi for Oct. 22.
Deputy Attorney General Kerry DiJoseph prosecuted Lusardi and took the guilty plea for the Division of Criminal Justice Specialized Crimes Bureau-Casino Prosecution Unit. The case was investigated by the New Jersey State Police and the Division of Criminal Justice. Detective Sgt. Arthur Ferrari and Detective Sgt. 1st Class Eric Hubbs were lead detectives for the State Police Casino Investigations Unit.
Lusardi participated as a player in the Borgata’s “Winter Poker Open,” which began on Jan. 14, 2014. The tournament, which was supposed to continue for three weeks, was terminated after just three days due to the discovery of the counterfeit poker chips. Investigators discovered that $800,000 in counterfeit chips had been put into play during the first two days of the tournament.
“Lusardi’s counterfeiting scheme sabotaged a major professional poker tournament at the Borgata, not to mention the plumbing at Harah’s Casino Hotel,” said Acting Attorney General Hoffman. “In addition to facing a substantial prison sentence, Lusardi must pay nearly half a million dollars in restitution.”
“Counterfeiting is a serious crime that carries stiff penalties, as this case demonstrates,” said Director Elie Honig of the Division of Criminal Justice. “Lusardi clearly feared that his scheme would be exposed, or he wouldn’t have resorted to such a desperate measure to dispose of his phony chips.”
“When you gamble on a flush in high-stakes poker, you either win big or lose big,” said Colonel Rick Fuentes, Superintendent of the New Jersey State Police. “Lusardi lost big when his alleged scheme was foiled by a leaking sewer pipe, which led to his quick apprehension by the New Jersey State Police Casino Investigations Unit.”
The counterfeit chips were discovered on Jan. 16, 2014, after guests at Harrah’s Casino Hotel reported a leak in the sewer line in two adjoining hotel rooms. Hotel staff found that the leak was caused by Borgata poker chips that had been flushed down a toilet. A total of 494 gray $5,000 chips and nine mustard $25,000 chips were extracted from the plumbing and turned over to the Borgata. The total face value of the chips was $2,695,000. The chips were examined and determined to be counterfeit Borgata Winter Poker Open Tournament poker chips. Stickers with a counterfeit Borgata trademark were affixed to the chips to make them appear authentic.
The tournament was suspended by the Borgata on Jan. 17, 2014, and the New Jersey Division of Gaming Enforcement (DGE) issued an order canceling the tournament on Jan. 18. DGE Director David Rebuck later issued an order directing the fair distribution of remaining prize funds and refund of entry fees by the Borgata. An audit of the chips used in the tournament revealed 160 counterfeit $5,000 chips, which were put into play during the first two days of the tournament. In addition, 22 more fake $5,000 chips were found in a clogged toilet in a men’s room at the Borgata on Jan. 18. The total face value of the counterfeit chips recovered was $3,605,000. The State Police quickly identified Lusardi as the man responsible for the counterfeit chips, and he was arrested on Jan. 24 at another hotel in Atlantic City. Lusardi ordered the poker chips over the Internet from a manufacturer in China and affixed the counterfeit logo stickers to them.
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