The City of Gambling and Risks
Las Vegas, the city of entertainment and the capital of gambling in America, boasts the largest casinos in the world. These casinos have one goal: to amass wealth by any means possible, and many lives have been ruined because of them. Casinos are equipped with sophisticated surveillance and security systems, sometimes even surpassing those of governments and banks. These systems aim to prevent cheating and ensure the casino maximizes its profits. However, one man challenged this entire city, managing to penetrate all the security measures put in place by the casinos, transforming himself into the biggest forger in the world of gambling.
The Origins of the Chip Forger: Eric Morikawa
Our story concerns Eric Morikawa, an American of Japanese descent. In 2000, Morikawa moved to Las Vegas, known as the gambling capital, but his goal wasn't to enter that world. He moved to work in construction, as he was a builder, and the city was experiencing rapid expansion in hotels and casinos. With increasing work, Morikawa established a small contracting company and hired workers.
A Life-Changing Encounter
One day, after a strenuous workday, Morikawa went to an arcade to unwind, where he met Jeremy Lewis. They chatted, and Morikawa learned that Jeremy was looking for work but his past criminal record, involving drug and forgery charges, was hindering him. Morikawa felt that Jeremy was motivated to work, so he offered him a job at his company, and Jeremy promised to be diligent. Jeremy worked as a laborer for Morikawa's company and was diligent, and their relationship grew stronger, making them close friends.
The Construction Crisis and the Idea of Forgery
Everything went smoothly until 2004, when the construction and real estate sectors in Las Vegas were severely hit. Demand collapsed, and many contracting companies, including Morikawa's, began to struggle, resorting to loans and working in distant locations. One day, as Morikawa and Jeremy were returning from work, they saw an advertisement for a casino featuring a $5,000 chip. Morikawa wondered if making a similar chip would be difficult.
The Beginning of Forgery
Chips are the currency used in casinos, and their value and design vary from one casino to another. When Morikawa saw the sign, he asked Jeremy about the possibility of making a similar chip. Jeremy, who had a history of forgery, was enthusiastic about the idea. Morikawa initially hesitated, as he had lived an upright life, but debts and his family's circumstances led him to consider it. He convinced himself that casinos deserved to be robbed, and Jeremy immediately agreed.
Attempts to Replicate Chips
Morikawa and Jeremy began their attempts to forge chips. They bought various chips from different casinos to examine them in their workshop in Morikawa's garage. They analyzed the materials used in chip manufacturing, such as plastic, sand, clay, ceramics, and acrylic, which are combined with specialized machines at high temperatures and pressures. Morikawa and Jeremy tried to make their own chips with inexpensive tools. They succeeded in replicating the weight and apparent feel of the chip, but the only problem was the sound the chip made when dropped; the fake chip produced a heavy sound, unlike the hollow sound of the original chip. After numerous attempts and despair, they realized they wouldn't be able to manually replicate the chips.
Converting Chips Instead of Replicating Them
Most of the chips Morikawa and Jeremy studied were from a casino called Green Ranch. After failing to fully replicate the chips, Morikawa had a different idea: why not convert a $1 chip into a $100 chip? The only difference between them was the color and the printed number. The first step was to remove the number written on the chip, which was a shiny plastic circle attached with glue. They found that placing the chip in boiling water removed the circle without bending the chip.
Mastering Counterfeiting
The next step was to imitate the colors of the $100 chip. They brought paints and mixed them until they achieved a matching shade. They painted the $1 chip entirely gray and ensured the color and sheen matched, as well as the paint thickness. After that, they imitated the lines drawn on the sides using adhesive tape and spray paint. The result was very similar to the $100 chip. Finally, they imitated the inner circle with the chip's value printed on it by scanning an image of the chip and printing it on glossy plastic paper.
Hidden Chips and the First Experiment
The original chips had an additional layer of protection: a glowing dot shaped like a hat that appeared under ultraviolet light. Morikawa brought a pen with invisible ink and drew a similar symbol on the fake chip. With that, the counterfeiting process was complete. They made three fake $100 chips and decided to test them at the Green Ranch casino. Morikawa was nervous, while Jeremy, with his criminal history, was ready for the mission. Jeremy entered the casino and confidently handed the three chips to the cashier, who exchanged them for $300.
Success and Expansion in Forgery
Those $300 were the sweetest for Jeremy. Morikawa was waiting in the car, tense. When Jeremy returned, he quickly opened the car door and told him to move, but he was smiling and holding $300. Both were extremely happy, especially given their difficult financial circumstances. They returned to their workshop and began making more chips; each of them could make a new chip within 10 minutes.
Diversifying Targets and Methods
They didn't just target one casino, as that would raise suspicions. Morikawa and Jeremy began forging chips belonging to eight of the largest casinos in Las Vegas, with variations in colors and fine details. They didn't cash out the fake chips immediately; instead, they used them in gambling games, making it seem natural when they did cash them. Casinos were filled with surveillance cameras and teams tracking players to prevent cheating. Morikawa and Jeremy were careful about that.
A Smart Strategy to Avoid Suspicion
One of their clever tactics was to buy real chips directly from the dealer at the gaming table, then go out to the car and swap them with the fake chips they had made. After that, they would return to the casino cashier and exchange the fake chips for cash. This way, if they were caught, they could point to the table where they bought the chips and claim they got them directly from the dealer, thus ensuring they wouldn't be held accountable.
Influx of Money and Changing Lives
They continued this routine, forging thousands of dollars worth of chips daily, even denominations of $500 and $1,000. Money flowed into their pockets, and their wealth grew. Morikawa's lifestyle changed; he started taking his wife and daughters to upscale restaurants and buying her everything she desired. His wife noticed the financial change and asked about the source of the money, but he evaded, telling her it was from work and building contracts. His wife was suspicious, but she became one of the biggest beneficiaries, buying luxury brands, and no longer pressed for the source of their wealth.
Jeremy's Descent into Vice
Things continued this way for three months. While Morikawa and his family enjoyed their wealth, Jeremy took things to a different level. He indulged completely in his desires, renting luxurious hotel suites and spending his time partying, using drugs, and drinking alcohol. Morikawa noticed that Jeremy wasn't sleeping much and was always under the influence.
Blackmail and Exposure
One day, Morikawa overheard Jeremy talking loudly on the phone with a woman; it was clear the argument was about money. Jeremy told Morikawa that he was in trouble and that the woman he had met was threatening to expose them to the police if he didn't give her money. Morikawa was shocked, especially after learning that Jeremy had told her everything about their operation. Morikawa found no way out but to pay the woman $10,000.
Consequences of Overconfidence
The blackmail resumed a few days later, and the woman demanded a larger sum. Morikawa paid her, but he clearly told her that this would be the last payment. This approach worked temporarily, and a period passed without contact. Morikawa and Jeremy returned to their work, forging chips and exchanging them for cash. However, on April 1, 2005, a man knocked on Morikawa's door, claiming his son's ball had fallen into the backyard. As Morikawa turned his back, the man followed him inside and arrested him.
The Forgers' Arrest
It turned out that the man and others were agents from the Gaming Control Board , a governmental security agency specializing in gambling-related cases. The woman who had been blackmailing them, angered by Morikawa's approach, had reported them. After investigation and tracking casino cameras, they managed to obtain some fake chips and confirmed their forgery. They obtained a search and arrest warrant for Morikawa and Jeremy.
Evidence of Guilt and the Quality of Forgery
After Morikawa's arrest, they searched his house and workshop and found all the evidence confirming the massive forgery operation: tools, paints, printers, raw materials, and a large number of fake chips of different denominations belonging to several casinos. The agents were shocked by the quality of the fake chips; some were indistinguishable from the originals. It was surprising that two simple construction workers had jeopardized the entire gambling industry.
High Bail and Temporary Imprisonment
Morikawa and Jeremy were taken into custody, and three days later, they appeared before a judge who set bail at $5 million, an insane amount even for the most dangerous criminals. This amount reflected the power of the gambling industry and its desire to make an example of them. They didn't have that amount, so they were sent to a high-security prison, where they were treated as dangerous felons. Their exorbitant bail became the talk of the inmates.
A Meeting in Prison and a New Agreement
In prison, Morikawa met another inmate whose bail was even higher; he turned out to be a Russian mobster. The Russian was impressed by Morikawa's story and offered him a joint venture upon their release. Morikawa agreed, but he wasn't serious.
Morikawa's Release and Continued Financial Hardship
After several days, Morikawa hired a powerful lawyer specializing in defending criminals. The lawyer successfully reduced the bail from $5 million to $12,000, as Morikawa had a clean record. Morikawa was able to pay the amount and was released on bail, while Jeremy remained in prison due to his previous criminal record and another outstanding arrest warrant. Morikawa was released, but he was awaiting trial, and his income source was cut off, leading to mounting debts and legal fees.
Morikawa's Despair and Return to the Russian
Months passed slowly until 2006. With accumulating debts and despair, Morikawa was forced to contact the Russian mobster he had met in prison. The Russian had also been released. They met and began discussing business ventures. The Russian asked Morikawa to teach him how to make fake chips. Morikawa was apprehensive about the risk, but his desperate financial situation forced him to agree.
Training the Russian Gang
Morikawa and the Russian reached an agreement: Morikawa would train the Russian and his men on how to make fake chips, and they would handle the entire operation, while Morikawa would receive 25% of the profits. Morikawa began training the Russians in his garage workshop and sometimes at their headquarters, and he was cautious in his movements.
The Gang's Exposure and Renewed Trouble
After training them for a while, the gang members began their operation. However, the problem was that the Russians were not as professional as Morikawa, and the quality of their fake chips was not at the same level. One day, a casino employee noticed that some of the fake chips were different from the originals in color and shape. The employee reported it to the authorities, and after examination, they confirmed that the chips were fake. They informed the responsible security agencies, and the Gaming Control Board launched an investigation.
Morikawa's Second Arrest
Through surveillance cameras, several members of the Russian gang were identified, and it was noted that this operation was larger and more extensive. They were unsure of Morikawa's involvement, but he was under surveillance. By tracking the gang members, agents arrived at Morikawa's house, realizing he was the mastermind behind the operation. The agents decided to raid the house, and at that moment, Morikawa was in the garage with the gang members, with all the tools and paints in front of them. The agents surrounded the house and stormed it, and Morikawa raised his hands and surrendered.
A Reduced Sentence and Release from Prison
Morikawa was arrested for the second time and returned to prison. He believed his life was over and he would receive a harsh sentence. However, his powerful lawyer defended him brilliantly, managing to get him out without a prison sentence. Morikawa pleaded guilty to six charges, but the sentence his lawyer secured was five years of probation with community service. This meant he wouldn't be imprisoned, but he had to be careful during these years and not commit any crimes.
Professionalism Saves Him
What helped in reducing his sentence, besides his lawyer's skill, was their inability to prove the full quantity of chips he had forged. The chips they managed to prove were only worth $36,000, while Morikawa now claims they exceeded a million dollars. This means his professionalism and meticulousness in forgery saved him even after his exposure, as the fake chips blended with the originals to the point of being indistinguishable.
Morikawa's Lesson and the Change in Casino Systems
Morikawa states that he regrets what he did and will never return to it again. As for his friend Jeremy, he spent several years in prison due to previous cases. Morikawa's story served as a wake-up call for casinos and the chip system they use. After this case, all major casinos added small electronic RFID (RFID Journal) chips to their chips. These chips identify the chip's value and type, and their location within the casino can be tracked. Scanning devices are now used to detect these electronic chips and determine their value. Thus, it has become almost impossible to counterfeit these chips.
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Sources:
For more information on counterfeiting, you can visit the Interpol official site on counterfeiting.
Explore more about the history of gambling at Britannica Encyclopedia.
Discover real stories of major casino scams through History Channel.