Last week, Christian Lusardi (pictured), the alleged mastermind behind the Borgata “chipgate” scandal, pled guilty to two federal charges: copyright infringement and trafficking in counterfeit labels. He earned a five-year prison sentence and another three years of probationfollowing his release. Lusardi will also have to pay restitution of over $1.1 million.

The case against Lusardi was actually ongoing when he allegedly committed his acts in New Jersey that brought his name to light in the poker world. An investigation by the Department of Homeland Security had Lusardi under surveillance since 2010 and he was a person of interest in a case dating back to 2012. After Lusardi was arrested last year for fake chips at Borgata, the feds were able to get a look inside his home and were stunned at what they found.

The search of Lusardi’s home in Fayetteville, North Carolina turned up more than 37,000 pirated DVDs, which Lusardi would sell online, at pawn shops, and at flea markets. DVD burners, packaging equipment, and shipping labels were also found in the home, demonstrating that he was sending the product around North Carolina. The success of DVD piracy is allegedly one of the things that led Lusardi to think that he could counterfeit poker chips.

Authorities spoke with Lusardi’s ex-wife, who admitted that fake chips were part of the shipments that were coming from China. She also discussed how Lusardi had used his own daughter to help construct the counterfeits. Lusardi’s then-girlfriend confirmed the ex-wife’s story, stating that prior to the start of the 2014 Borgata Winter Poker Open, Lusardi had sent himself a package to the hotel.

The first event of the 2014 Borgata Winter Poker Open was a $2 million guaranteed event with a $500 buy-in. Lusardi bought into the tournament and was one of the leaders of the event as it reached its final days. The reason for Lusardi’s success? He allegedly had introduced 800,000 of his counterfeit stash of chips (pictured) into the tournament.

Once the counterfeit chips were discovered, Borgata officials immediately shut down the tournament, which had three tables left. Lusardi, who had busted in the money, had already fled the Borgata grounds and checked out of his room at Harrah’s, but not before dumping the remainder of the counterfeit chips into the commode.

The resulting clog brought repairmen at first and then security officials, who immediately put the spotlight on Lusardi by issuing an arrest warrant. He was apprehended a few days later at another Atlantic City hotel.

The resolution of the federal case against Lusardi may have many wondering what will happen with the charges from the Borgata case. As federal cases often overrule state cases, the resolution of the federal piracy charges was going to get first dibs. With the resulting five years in federal prison and three years’ probation, New Jersey officials may not want to pursue the case against Lusardi, figuring that the federal case would be more punishment than they could administer.

There is a possibility that the New Jersey Division of Gaming Enforcement could try Lusardi while in federal prison, but any sentence might run concurrent with his federal time instead of consecutively.

Want the latest poker headlines and interviews? Follow PocketFives on Twitterand Like PocketFives on Facebook.