That is not true, the FCC has had to admit that the radios, sold as is out of the box is legal.
As long as you have your lic and stay with in the bands you have your ticket for, you can expand them to cover whatever frequency they will cover, and they are perfectly legal.
If you want to search here on the forum, the radio thing has been beat to death, along with the "list" of banned radios that they also admited was bogus.
Any of the Big Box radios are capable of expanded TX/RX, been that way forever.
Some of it is in the FCC section below.
As for the guy who got busted, yes, he was using non type accepted equiptment on the CB band..He was TRANSMITING, that is a violation of the rules.
This is a VERY good reason to study and get your lic and move up to 10 meters.
But as for owning the radio he was as said...Golden.
He screwed up when he attracted the attention of the FCC.
73
Jeff