LA County Busts Warez Trader

Internet News reports that Jed Frederick Kobles, a Los Angeles warez trader, pleaded guilty to a single count of grand theft after being busted by Los Angeles County High Tech Crimes Unit.

I am having a hard time understanding this news report–the feds have exclusive jurisdiction over copyright infringement, and I can’t understand how a prosecution for grand theft for warez trading survives copyright preemption. If you have any insights in this, please let me know.