Supposedly, the rules had changed with checked in luggage. There was a time that you were not permitted to carry cigar cutters in checked baggage - however it's now permissible to do so. They're not supposed to confiscate the cutter - but then again (as Kevin eludes to), they ain't the brightest bulbs in the pack...

I toss my Otter box into my checked luggage - with the cutter and lighter under the bottom tray. I've not had any issues with anyone taking my lighter/cutter/otter box. All has been good. I'd not be so tempted to carry it through the security check point - they seem to make the biggest deal over the craziest things...