Opinion ID: 4512817
Heading Depth: 2
Heading Rank: 1

Heading: Search of Scully’s Home Office

Text: Concerned that Gourmet had been involved in federal crimes while he owned it, Sliz went to the IRS, which launched an investigation. IRS agents secured a warrant to search 1015 East Cliff Drive, which was Scully’s residence and, according to a Gourmet company document, was also Gourmet’s “West Coast Regional Office.” The affidavit submitted to the magistrate judge in support of the warrant explained that Scully “converted a small apartment behind the residence into an office” where he did work for Gourmet and that officers were looking for the sort of evidence that would be found in a home office. The affiant, Agent Gary Ploetz, stated that, in his experience, “business records are kept at addresses listed as a business office.” The affidavit further stated that “the latest Gourmet employee phone directory and office listing” listed 1015 East Cliff Drive as an office, and that a phone and fax number were listed for the same address. Before preparing the warrant, agents reviewed satellite images of the location and drove past it. IRS Agent Demetrius Hardeman prepared the warrant application, and Ploetz acted as the affiant. They had the warrant application reviewed and approved by local agents and the local U.S. Attorney’s Office. A federal magistrate judge reviewed and signed both the warrant and the affidavit in support. The agents involved in the seizure were each provided a copy of the warrant before the raid. While the affidavit in support of the warrant explained that Scully’s home office was in a building 4 Case: 16-51429 Document: 00515332685 Page: 5 Date Filed: 03/04/2020 No. 16-51429 separate from the residence, the warrant included a physical description of the primary residence only. 1 Scully’s home office was in fact located at 1015½ East Cliff Drive, a separate building behind the primary residence and down a private sidewalk. The parcel of land contained three structures served by one driveway—the primary residence at 1015 East Cliff Drive, the home office behind the primary residence at 1015½ East Cliff Drive, and a structure to the left of the primary residence that was rented out. In addition to the primary residence, the agents searched the home office at 1015½ East Cliff Drive and seized from that location documents and an image of Scully’s computer hard drive. Agent Hardeman instructed Ploetz’s team to not search the third structure on the property because it was leased by someone else. The agents also secured a warrant to search Kevin’s home, and inside a cooler hidden in the crawl space underneath the home, agents found records from a foreign bank documenting the transfers to Kevin’s wife from Nataporn’s companies. The agents also recovered documents tracking the commissions Scully and Kevin received. The searches of both homes uncovered documents showing the commissions and the Scullys’ involvement with and monitoring of Nataporn and her companies. 1The description stated in full: The location of the premises is at the address of 1015 East Cliff Drive, Santa Cruz, CA 95062 and is described as follows: • It is a white, wooden, one story residence with green trimming. There is a small wrap-around driveway that has one way in and out. A small sign with house number “1015” is hanging in front of the house from the roof of the porch. The front door has a screen door with green trimming. • There are large bay-windows in the front left of the residence. • Residences are only located on the northbound side of East Cliff Drive. • Facing the residence from the street, there isn’t a house on the right side. The home is covered by trees. 5 Case: 16-51429 Document: 00515332685 Page: 6 Date Filed: 03/04/2020 No. 16-51429