Ex-Pennsylvania Casino Worker, Student Plead Not Guilty to Bill Scheme

A former Pennsylvania casino worker and a Nevada high school student pleaded not guilty Wednesday to charges in a Uganda-based scheme that produced more than $1.5 million in high-quality counterfeit U.S. bills.

Michael Lin, 20, of Bethlehem, and Zackary Ruiz, 28, of Las Vegas, appeared before a federal magistrate in Pittsburgh. Two others have also been charged in the plot.

Ryan Gustafson, 27, who authorities say was the ringleader, remains jailed in Uganda on charges he produced the high-quality $20, $50 and $100 bills, then sold them on the dark Web _ an underground Internet that uses encrypted sites that allow users to remain anonymous. It's unclear when he'll return to Pennsylvania for prosecution because he also faces counterfeiting charges in Uganda.

Jeremy Miller, 30, of Seattle, who is accused along with Ruiz of buying the bogus bills from Gustafson, waived his right to an in-person arraignment and planned to plead not guilty through his attorney later Wednesday.

Although they're charged with conspiracy, Lin and Ruiz hadn't met until Wednesday, when they sat beside each other in court. Each was dressed neatly in slacks and dress shirts.

Assistant U.S. Attorney Shardul Desai told the magistrate he expect the case to take a month to try because it involves reams of dark Web chatroom discussions and instant messages that allowed Lin, Ruiz and Miller to communicate with Gustafson. Desai plans to ask the court to seal or redact some documents to protect confidential informants.

"We have data, obviously, from all over the world _ Uganda and several sites in the United States,'' Desai told the judge.

Lin is accused of passing some of the counterfeit bills and writing an online guide about how to pass them at casinos. Lin isn't charged with buying money from Gustafson, but prosecutors haven't said how he came to possess the fake money.

In general, however, the bogus money printed in Uganda was packaged inside boxes of brochures that appeared to be from a Christian-based charity for poor African children. Placing the brochures in water dissolved glue, which freed the money concealed inside.

The money was shipped to Florida, Minnesota, Texas, Washington and Pennsylvania, where the case unraveled when a fake $100 passed at a Pittsburgh coffee shop in December 2013 led to the arrest of a now-cooperating witness.

The judge allowed Ruiz to remain free because he lives with his mother and sister and attends the Nevada Virtual Academy. He's scheduled to graduate in June.

Lin has to wear an electronic ankle bracelet because he has no family or other ties to Bethlehem now that he no longer works for the Sands Casino Resort. Lin also had four fake driver's licenses that prosecutors say he bought on the dark Web. Both suspects were ordered to surrender their passports.

Lin, Ruiz and their attorneys declined to comment.