HOUSTON -- Three Houston-area residents were arrested on Friday, accused of producing and distributing counterfeit DVDs, KPRC Local 2 reported.

After an 18-month-long investigation, the FBI moved in on a home in the 13900 block of Charlton Way Drive, a gated community near Katy. Investigators said four suspected DVD bootleggers ran a multi-million dollar operation.

Chuen Han Yuen, 29, Man Yam Yuen, 28, and Tsao Ping Ng, 54, were apprehended on Friday. The fourth suspect, Sin Yuen, 31, remains on the loose. All were charged with conspiracy, mail fraud, wire fraud and copyright infringement.

FBI agents said the four naturalized U.S. citizens, originally from Hong Kong, are accused of running a scheme which involved unauthorized reproduction and distribution of copyrighted DVDs, specifically Disney movies and the TV series, "Get Smart."

The indictment also alleges that they then transferred the proceeds gained by the illegal activity using a Pay Pal account to several bank accounts and netted approximately $3 million between 2005 and 2009.

The investigation was conducted by the FBI in Tucson with assistance from the Internal Revenue Service, Criminal Investigation Division and the FBI in Houston.

Houston agents said the crime is serious, which is why there is an ever-present reminder.

"The first thing you see when you put on a DVD is the FBI anti-piracy warning, and that warning was created to remind people that it is a crime that copyright infringing and this crime has high civil and criminal penalties," said Patricia Villafranca, an FBI special agent.

A conviction for wire fraud or mail fraud each carries a maximum penalty of 20 years in federal prison, a $250,000 fine or both. A conviction for conspiracy or copyright infringement each carries a maximum penalty of five years in federal prison, a $250,000 fine or both.