Police said they executed their first warrant at a garage, where they found 23 duplicator towers, similar to computer hard drive towers, containing more than 200 burners. The second search warrant was served hours later at an office where the 40,000 discs were found.
Police announced the arrest Thursday but declined to make a statement about the case, referring calls to the RIAA.
The RIAA said the alleged bootlegging group essentially acted as a wholesaler, capable of producing more than 6,000 CDs an hour, and sold the discs to people who would then peddle them in flea markets. It frequently changed its production locations and distribution centers, authorities said.