That's not quite true. Selling the Wii to the cop was the predicate to his indictment. But he was prosecuted for running a business selling mod chips. They found something like a dozen waiting to to be installed and sold in his workshop, and presented evidence of his ongoing commercial venture at trial.

What really happened here is that he got royally screwed at sentencing. Criminal History Category I, at effectively the base sentencing level for criminal DMCA infringement, and they decided to make an example out of him.