United States v. Segal

299 F. Supp. 2d 852, 2004 U.S. Dist. LEXIS 527, 2004 WL 117470
Procedural entryThis page is a short order in United States v. Segal. Read the opinion of the Court — 299 F. Supp. 2d 840
District Court, N.D. Illinois·Decided January 14, 2004·No. 02 CR 112·Published

Opinion

MEMORANDUM OPINION AND ORDER

CASTILLO, District Judge.

On January 26, 2002, FBI agents searched Michael Segal’s office, his two residences — one on Lake Shore Drive and another on Sheridan Road — and a storage area associated with the Lake Shore Drive residence. Presently before this Court is Segal’s motion to suppress evidence obtained during the searches of his residences and associated storage area. For the reasons provided below, we deny his motion to suppress. (R. 143-1.)

RELEVANT FACTS

The warrants for these searches were based on an affidavit by FBI agent Patrick Murphy. The affidavit includes sixty-four paragraphs; the final twelve paragraphs discuss the locations of the records that support the criminal allegations. In addition to providing a detailed description of the charges against Segal, the affidavit contains the following information in support of the Government’s request to search Segal’s residences and associated storage area: (1) two confidential informants stated that Segal conducts business from both of his residences; (2) both residences are equipped with computers that can access Near North’s email system; (3) Near North employees gather business and personal documents for Segal at the end of each work day for him to take to his residences; (4) a confidential informant stated that he has performed personal services for the Segal family at both residences; (5) a confidential informant stated that Segal has a storage area associated with his Lake Shore residence; and (6) according to the affiant’s experience, it is common to store financial records, correspondence, and documents in storage areas affiliated with residences.

LEGAL STANDARDS

When issuing a search warrant, a magistrate judge must “make a practical, *854 common-sense decision whether, given all the circumstances set forth in the affidavit before him, including the ‘veracity’ and ‘basis of knowledge’ of persons supplying hearsay information, there is a fair probability that contraband or evidence of a crime will be found in a particular place.” Ill. v. Gates, 462 U.S. 213, 238, 103 S.Ct. 2317, 76 L.Ed.2d 527 (1983). A magistrate judge’s determination is accorded “great deference.” Id. at 236, 103 S.Ct. 2317 (quoting Spinelli v. United States, 393 U.S. 410, 419, 89 S.Ct. 584, 21 L.Ed.2d 637 (1969)). The reviewing court only determines whether the magistrate judge had a “ ‘substantial basis for ... concluding]’ that probable cause existed.” Id. (quoting Jones v. United States, 362 U.S. 257, 271, 80 S.Ct. 725, 4 L.Ed.2d 697 (1960)). Finally, a magistrate judge’s probable cause determination “should be overruled only when the supporting affidavit, read as a whole in a realistic and common sense manner, does not allege specific facts and circumstances from which the magistrate could reasonably conclude that the items sought to be seized are associated with the crime and located in the place indicated.” United States v. Spry, 190 F.3d 829, 835 (7th Cir.1999) (citing United States v. Pritchard, 745 F.2d 1112, 1120 (7th Cir.1984)).

ANALYSIS

Defendants assert that the Government’s affidavit contains insufficient facts to permit the magistrate judge to conclude that probable cause existed to search Se-gal’s Lake Shore Drive and Sheridan Road residences and the associated storage area. Defendants argue that United States v. Brown, 832 F.2d 991 (7th Cir.1987), United States v. Dickerson, 975 F.2d 1245 (7th Cir.1992), and United States v. McNeal, 82 F.Supp.2d 945 (S.D.Ind.2000), compel this Court to find that the magistrate judge lacked a substantial basis for concluding that probable cause existed. In Brovm, the Government requested a warrant to search an apartment, but the affidavit did not indicate how the Government knew that the apartment “was truly one of [the defendant’s] addresses” and contained “a paucity of information suggesting that a search of the [apartment] would uncover evidence of wrongdoing.” 832 F.2d at 994. Thus, the Seventh Circuit stated that it did not dispute “the district court’s conclusion that the totality of the circumstances in this case did not establish a substantial basis for concluding that probable cause existed.” Id. In Dickerson, the Government requested a warrant to search a residence, but the affidavit “stated only that a witness saw the robber run from the bank to a car parked in the emergency lane of 1-69 and the license plate number of the car was registered to [the defendant’s residence].” 975 F.2d at 1249-50. Importantly, the affidavit did not state that defendant’s car was parked at the residence the Government wanted to search. Id. Thus, the Seventh Circuit doubted whether a magistrate judge had a substantial basis for concluding that probable cause existed. Id. Finally in McNeal, the court held that the magistrate judge lacked a substantial basis for concluding that probable cause existed when the Government requested a warrant to search a residence with an affidavit that contained no evidence that the defendant “controlled the residence” and no information about a confidential informant who stated that the defendant was involved in drug transactions. 82 F.Supp.2d at 960.

After reviewing these cases, we conclude that they do not compel this Court to find in the present case that the magistrate judge lacked a substantial basis for concluding that probable cause existed. First, in both Brown and McNeal the affidavits failed to indicate that the defendants had *855 any control over the searched residences. There is no dispute that Segal controlled both the Lake Shore Drive and Sheridan Road residences. Second, the court in McNeal could not ascertain the veracity of the information provided by a confidential informant. The affidavit in the present ease identifies each of the confidential informants and explains their connection to Segal and Near North. Finally, the only connection between the residence and the affidavit in Dickerson was the defendant’s car registration. The affidavit in the present case states that Segal worked at his residences and, thus, provides a much greater connection between his residences and the alleged fraud crimes. After reviewing these cases, we find that they are all distinguishable.

In fact, the affidavit provided the magistrate judge with a substantial basis for concluding that probable cause existed. First, the affidavit indicated that these residences were controlled by Segal.

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United States v. Segal, 299 F. Supp. 2d 852, 2004 U.S. Dist. LEXIS 527, 2004 WL 117470 (N.D. Ill. 2004).

299 F. Supp. 2d 852 (United States v. Segal) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Jones v. United States
362 U.S. 257 (Supreme Court, 1960)
Spinelli v. United States
393 U.S. 410 (Supreme Court, 1969)
Illinois v. Gates
462 U.S. 213 (Supreme Court, 1983)
United States v. Leon
468 U.S. 897 (Supreme Court, 1984)
United States v. Walter Pritchard
745 F.2d 1112 (Seventh Circuit, 1984)
United States v. Vernon Brown
832 F.2d 991 (Seventh Circuit, 1987)
United States v. Joseph C. Dickerson
975 F.2d 1245 (Seventh Circuit, 1992)
United States v. Susan C. Spry
190 F.3d 829 (Seventh Circuit, 1999)
United States v. Larry L. Koerth A/K/A Lonnie Younger
312 F.3d 862 (Seventh Circuit, 2002)
United States v. McNeal
82 F. Supp. 2d 945 (S.D. Indiana, 2000)