United States v. The Offices Known as 50 State Distributing Co.

The United States appeals from the District Court’s order granting a motion by Appellee 50 State Distributing Co., for the return of improperly seized property, pursuant to Rule 41(e), F.R.Crim.P. The search in question was executed by agents of the United States Postal Service on October 19, 1981, pursuant to a warrant, and resulted in virtually all of 50 State’s business records being seized.

FACTS

On October 19, 1981, following several weeks of investigation, the United States Postal Service obtained a warrant from a United States Magistrate authorizing the search of 50 State’s place of business in Las Vegas, including “all persons” on the premises. The warrant authorized the seizure of certain property, as follows:

The warrant was based on and incorporated the affidavit of Postal Inspector Wayne E. Gray. The affidavit described 50 State as a national supplier of advertising specialty products such as ball point or felt tip pens, key chains and calendars, all bearing the name and advertising message of the purchaser. It described 50 State’s business as directed at small businesses nationwide and a “boiler room” sales operation which engaged in fraud and misrepresentation in…