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By Felicity Ussher, 8 February 1999 00:20

NEWS The FBI has seized a software forging machine in a California suburb which was churning out up to 14,000 fake Microsoft CDs each day. Microsoft said it had seized the heart of the biggest software piracy operation to date. The crime ring, based in Orange County, was selling millions of dollars worth of fake software to the US and Europe. FBI officials seized $15m worth of CDs and certificates in the raid. Tamara Sellers, Product Identification Specialist at Microsoft, took part. "There were numerous warehouses in two neighbouring cities," she told Silicon.com. "In the first location, we found the printing, folding and binding machines, with piles and piles of fake documentation for Office 97 Professional and Windows. The software replicator was in the second location. "There weren't many Windows 95 covers there. They were already well into Windows 98," she added. The seizure marks the high point of a two-year investigation by Microsoft, the FBI and local police forces. Seven people were arrested, including the suspected ringleader. Ten other people were held. "I think this is just the tip of the iceberg," said Anne-Marie Levins, Microsoft's anti-fraud attorney. "It's very likely there will be further investigation into the distributors and financers of the fake software. I'm sure this is linked to tax evasion and hidden assets around the world." The tip-off for the bust came from Little Saigon, a Californian suburb.