United States v. Katrina Lyons

687 F.3d 754, 2012 WL 3023528, 2012 U.S. App. LEXIS 15300
CourtCourt of Appeals for the Sixth Circuit
DecidedJuly 25, 2012
Docket10-2402
StatusPublished
Cited by112 cases

This text of 687 F.3d 754 (United States v. Katrina Lyons) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Katrina Lyons, 687 F.3d 754, 2012 WL 3023528, 2012 U.S. App. LEXIS 15300 (6th Cir. 2012).

Opinion

OPINION

CLAY, Circuit Judge.

Defendant Katrina Lyons was charged with one count of conspiracy to distribute and possess with intent to distribute controlled substances, in violation of 21 U.S.C. §§ 846 and 841(a)(1); one count of possession with intent to distribute controlled substances, in violation of 21 U.S.C. § 841(a)(1); and criminal forfeiture allega *759 tions, pursuant to 18 U.S.C. § 981(a)(1)(C), 28 U.S.C. § 2461(c), and 21 U.S.C. § 853, after two Michigan state police troopers discovered narcotics in her vehicle during a traffic stop requested by federal Drug Enforcement Administration (DEA) agents. The government now appeals an order by' the district court that granted Defendant’s motion to suppress the evidence seized during the stop. For the reasons that follow, we REVERSE and REMAND for further proceedings consistent with this opinion.

BACKGROUND

I. The Initial Investigation

This case stems from a DEA investigation into a large-scale prescription drug ring and Medicare fraud scheme based out of Detroit, Michigan. The investigation’s prime target, George Williams, was the owner and operator of a healthcare practice called Quick Response Medical Professionals, P.C. (QRMP). QRMP recruited Medicare-eligible patients who submitted to allegedly sham physical examinations with the practice’s affiliated doctor, Milagros Ebreo, M.D. Dr. Ebreo allegedly prescribed QRMP’s patients a variety of controlled substances, including oxycodone, vicodin, xanax, and prescription cough syrup. QRMP then retained possession of the prescriptions, filled them at cooperating pharmacies, and distributed the drugs through various intermediaries for street sale. In exchange, QRMP paid its patients small amounts of cash (usually between $150-$250) and billed Medicare for the fraudulent medical charges.

In pursuit of its scheme, QRMP employed several individuals who recruited and transported patients, scheduled doctor’s visits, filed the fraudulent Medicare billings, and provided security and accounting services. The DEA’s investigation, which began in June 2007, eventually expanded to include wiretaps of Williams’ and several employees’ phones as well as surveillance of suspected sites of QRMP operations.

George Williams managed QRMP out of several locations, including a business office, an office in his personal residence, and a hotel room in Southfield, Michigan. One location of particular significance to the scheme was a residence located at 20226 Stratford Road, in' thé Green Acres neighborhood of Detroit. The DEA learned that QRMP had converted the Stratford Road house into Dr. Ebreo’s medical office, where she saw patients for physical examinations and wrote out patient prescriptions. A QRMP employee, Yolando Young, acted as the site’s “office manager,” scheduling appointments and managing paperwork. DEA agents also witnessed various other QRMP employees transporting patients to and from the Stratford Road house for their appointments with Dr. Ebreo and her assistant. Williams, however, had not been seen at the Stratford Road house. Additionally, the agents neither observed nor received word of any packages traveling into or out of the residence. Based on these observations, the DEA theorized that the Stratford Road house was used primarily for QRMP’s medical and financial operations, but not as a storage site for the controlled substances.

By the date of Defendant’s arrest in this case, the DEA’s investigation was well underway. In the fifteen months since the DEA began investigating QRMP, the agency successfully linked the medical practice to at least three multi-state traffic stops that yielded narcotics. Although the traffic stops were made in different states (Michigan, Ohio, and Kentucky), all the cars were plated to Kentucky. Based on the traffic stops, in addition to other evidence gathered in its investigation, the *760 DEA concluded that QRMP was trafficking large amounts of controlled substances to the southern region of the United States, where the market for such drugs was especially lucrative.

II. DEA Surveillance of the Stratford Road House on September 25, 2008

On September 25, 2008, DEA Special Agent Kevin Graber led a team assigned to surveil the Stratford Road house. Around 2:50 p.m., the agents took up a position just south of the residence where they observed Williams’ Mercedes in the driveway. Shortly after the agents arrived, the Mercedes left the house. Several minutes later, Young, the office manager, also left. Several agents tailed Young to where she stopped at a local bank branch.

Around 3:07 p.m., the DEA agents monitoring the wiretaps intercepted a telephone call in which Young asked Williams if he was waiting for someone to arrive at the Stratford Road house. The agents listening to the wiretap relayed to the surveillance team that they could expect a female driving a gray vehicle with out-of-state plates to arrive at the house. Several minutes thereafter, a gray minivan with Alabama plates pulled into the driveway.

A woman, later identified as Defendant, exited the minivan and approached the front porch of the house. A few minutes later, Williams pulled up to the Stratford Road house in the Mercedes. Defendant returned to her vehicle, and the two cars advanced up the driveway where they no longer could be viewed from the road. While the cars were parked behind the house, Agent Graber decided to have the minivan stopped after it left the residence.

Agent Graber contacted the Michigan State Police Department to organize a traffic stop by a marked cruiser. After speaking with a lieutenant through the general office line, Agent Graber was connected to on-duty Michigan State Police Troopers Marcus Wise and James Grubbs. 1 Agent Graber provided the troopers with a description of the minivan, its plate number, and its driver. According to Agent Graber’s suppression hearing testimony, he also gave the troopers “limited, but substantial” details regarding the DEA’s investigation into QRMP and the basic facts leading the DEA to believe narcotics would be found in the minivan. However, Agent Graber asked the troopers to develop independent probable cause for the stop, because the DEA did not want its lead targets tipped off that QRMP was under federal investigation.

III. The Traffic Stop

About an hour later, both cars departed the Stratford Road house. Using Agent Graber’s description, the troopers quickly spotted the minivan. The troopers observed an air freshener and some bead necklaces hanging from the minivan’s rear-view mirror. Believing these objects to constitute a vision obstruction, a civil infraction under Michigan law, the troopers initiated a traffic stop.

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Cite This Page — Counsel Stack

Bluebook (online)
687 F.3d 754, 2012 WL 3023528, 2012 U.S. App. LEXIS 15300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-katrina-lyons-ca6-2012.