Court Opinion

ID: 9496423
Source: CourtListenerOpinion
Date Created: 2023-08-05 16:26:16.719184+00
Date Added: 2024-06-11T17:57:34.353867
License: Public Domain

THOMAS, Circuit Judge,
concurring in part and dissenting in part.
I agree completely with the majority’s thorough and excellent legal analysis. When the execution of a search warrant will likely result in the termination of a business, as occurred in this case, special care must be given to ensure that the scope of the warrant is not overly broad. I also agree that, if the government is relying upon the “permeated with fraud” exception to support an application for an otherwise overly-broad search warrant, it should state so in the application rather than attempting a post-hoc rationalization.
However, under the specific facts of this case, I cannot fault the district court’s conclusion. If the affidavit is read in context and in its entirety, it establishes probable cause to believe that the “central purpose” of the business was to serve as a front for defrauding taxpayers. See United States v. Rude, 88 F.3d 1538, 1550 (9th Cir.1996) (permeated with fraud exception applied because it was clear from the affidavit that the business’ “central purpose” was to serve as a front for defrauding investors); United States v. The Offices Known as 50 State Distributing Co., 708 *1021F.2d 1371, 1374 (9th Cir.1983) (permeated with fraud exception applied where affidavit evidenced pervasively fraudulent operation which encompassed entire business and all business-related books, records, and equipment).
Thus, despite the affidavit’s infirmities, I conclude that the district court did not err in applying the “permeated with fraud” exception under the particular circumstances of this case. Therefore, I would affirm the judgment of conviction.