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A security officer noticed the pair smoking cigarettes and undressing -- acts forbidden by the rules of the attraction, which can fit up to 40 people in each cabin.
"The guests in Cabin 17 didn't seem to notice, but the guests in Cabin 15 not only noticed but were video recording the acts" with cellphones, court documents quoted by the Las Vegas Review-Journal state.
The wheel's operator told police workers he used an intercom to ask the passengers to "please put all cigarettes out and put all clothes back on."
The pair briefly complied, but soon resumed both forbidden activities. Police were called when the pair refused a second request to halt their sexual encounter, the operator said.
Panzica and Scordianos were arrested at the end of their 30-minute ride.
"They both said they were just having a good time and didn't think anyone would notice," the arresting officers wrote in their report.
The suspects were arrested on felony charges of committing a sex act in public. They were later released on bond.
Police said Friday was Scordianos' birthday. Investigators said it was unclear whether the two suspects, who hail from different states, knew one another prior to their encounter.