A suspect has been arrested in the case of the counterfeit chips in the Borgata poker tournament. The $2 million guarantee was canceled on Jan. 18 with just 27 players left.

According to reports, the situation began when casino officials at Harrah’s Resort and Casino in Atlantic City discovered that someone had flushed 2.7 million worth of counterfeit poker chips down the toilet in a hotel room. The Borgata was then notified and the tournament was suspended. Tournament staff discovered an additional 800,000 chips in play.

Forty-two-year-old Christian Lusardi of Fayetteville, N.C. was the man staying in the room, and he was arrested on Friday by police at a motel in Atlantic City.

He has been charged with multiple crimes, including rigging a contest. His bail is $300,000.

“This is the first time we’ve had anything like this happen in our 10 years in business, and it’s the first time I’ve seen this in my 27 years in gaming,” Borgata Senior Vice President Joe Lupo told Press of Atlantic City.

Lusardi cashed for $6,814 in the tournament. He was the chip leader going into Day 2.

In 2008, Lusardi fell into hot water for running an illegal gambling house in North Carolina.

A total of 4,814 players put up the $560 to enter. The remaining prize money was frozen after the tournament was canceled. It’s unclear what the final resolution will be.

“The investigation by the [Division of Gaming Enforcement] and the State Police is ongoing and Borgata remains under the order the DGE issued last week,” Lupo said in a statement. “Borgata will continue to work with the DGE and the State Police until this matter is concluded and a final order is issued by the DGE concerning the resolution of Event I.”