Slots Seized in Los Angeles

Police Thursday raided a warehouse south of downtown Los Angeles and seized nearly 2,000 illegal slot machines as customs officials confiscated 1,000 more machines arriving in the Port of Los Angeles. The illegal gambling devices were found at 1702 S. Hooper Ave., near the Santa Monica (10) Freeway, said Lt. Paul Vernon of the Los Angeles Police Department's Media Relations office. Two people were arrested: Daniel Perlmutter, 64, of Calabasas, and Daniel Cabrera, 55, of El Monte, Vernon said. They were arrested for suspicion of illegal sales of slot machines, a misdemeanor and carrying $500 bail. "The criminal penalties are minor for this crime," Vernon said. "But what these men face now are significant civil penalties imposed by the state and federal government for evading taxes and workers' compensation laws. The fines could run into the tens of thousands of dollars in addition to the destruction of the slot machines."

Undercover vice officers had purchased several slot machines for $300 and $500 each, which led to today's raid. Representatives of the State Board of Equalization, which regulates state taxes, were present at the raids. Special agents from the California Attorney General's office also participated in the raid. The Attorney General enforces gambling laws under its division of gambling control. Neither Perlmutter nor Cabrera had a license for selling slot machines, Vernon said. "All of these slot machines originated out of Asia, mostly China," said Special Agent Frank Herbert with the Attorney General's office. "As gambling becomes more popular, we are seeing more and more illegal slot machines coming into the state." The slot machines were discovered in boxes which also contained children's toys. Officers also found documents showing a shipment of slot machines from China was due to arrive in the Port of Los Angeles today. More than 1,000 slot machines were confiscated. "This may be the largest seizure of illegal slot machines in LAPD's history," Vernon said. "No one assigned to vice could remember any thing bigger in the last several decades." It is illegal to possess or sell a slot machine in California. Special licenses are issued for slot machine dealers in the state, but sales must be made outside the state where slot machines are legal. The only exception is for slot machines over 25 years of age which are considered collectors' items.