By Bill Lindelof
blindelof@sacbee.com
The Sacramento Sheriff's Department was presented with $202,000 in asset seizure money Friday for helping to shut down an illegal cable television descrambler box sales operation.
Internal Revenue Service criminal investigation Special Agent in Charge Scott O'Briant presented Sheriff John McGinness with an over-sized check representing the money at a press conference.
"It's nice to get a gift from the IRS," quipped McGinness.
The Sacramento Valley Hi-Tech Crimes Task Force, the IRS and the Secret Service in 2003 launched an investigation into the international cable piracy scheme. The Postal Service also provided assistance.
The investigation revealed that Darryl Scott Poll and Carlo Mireles with Wholesale Electronics and Red Rock Group Ltd., were involved in the sale of the devices that were designed to allow viewers to watch premium channels and pay-per-view programming without paying for it.
Investigators believe that the companies grossed $12 million in sales.
The U.S. Attorney in 2003, filed an indictment by a federal grand jury on charges of mail fraud and conspiring to launder money and steal cable services against Poll, then 41, of Simi Valley, and his Las Vegas business partner, Mireles, then 29.
Because a Sacramento cable company investigator originally contacted Wholesale Electronics to order a "descrambler" device, the investigation into the two men's operation took root in Northern California, drawing in the high-tech crimes task force.
The two companies, through print and Internet advertising, sold the descramblers to customers who typically used credit cards to pay $200 each for a package, according to court documents.
Investigators believe 100,000 of the descramblers were sold.
Besides getting around paying monthly movie channel fees, users of the illegal box could get free sports events, which could cost as much as $100 for a big-name boxing match or $250 for a season's worth of games.
Poll was sentenced to five years in prison in 2007 for his part in the piracy scheme. Co-defendant Miereles got 16 months due to his cooperation, O'Briant said.
During the investigation, bank accounts and property was seized. Assets were sold after the case against the suspects was tried and the men sent to prison.
The Hi-Tech Crimes Task Force will use the money to solve identity-theft crimes, other high-tech crime and internet crime against children, said Sheriff's Lt. Harvey Woo.
Call The Bee's Bill Lindelof, (916) 321-1079.
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