United States v. Metter
860 F. Supp. 2d 205
| E.D.N.Y | 2012Background
- Metter is charged in a multidefendant indictment with securities fraud and related offenses arising from a scheme to inflate Spongetech’s reported sales and stock metrics.
- Metter moves to dismiss Counts 1-5 for improper venue and to suppress electronically stored information obtained during searches and a personal email search.
- The government opposes both motions and the Court consolidates them for decision.
- Venue pleaded in Counts 1-5 states the conduct occurred within the Eastern District of New York and elsewhere; the Court treats pleading venue as sufficient at the pleading stage and denies the motion without prejudice to renewal at trial if venue is not shown at that stage.
- For suppression, the government sought warrants to search Metter’s home, Spongetech’s office, and personal email accounts; imaged drives were retained off-site for review, but the government delayed reviewing the imaged evidence for over fifteen months, prompting a Fourth Amendment challenge.
- The Court grants Metter’s motion to suppress the electronic evidence seized and imaged pursuant to the three warrants, and denies the venue motions without prejudice to renew at trial.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether venue is proper in EDNY for Counts 1-5 and 9. | Metter argues venue is improper. | Government contends pleading sufficiency supports venue. | Venue proper at pleading; denied without prejudice to renew at trial. |
| Whether Count 8 (perjury) venue is proper in EDNY. | Metter contends improper venue. | Government asserts EDNY is proper. | Venue proper at this stage; denied without prejudice to renew. |
| Whether the government’s delay in reviewing imaged electronic evidence warrants suppression. | Delay violates Fourth Amendment privacy protections. | Delay is reasonable given off-site review needs. | Suppression of electronic evidence granted; delay deemed unreasonable. |
Key Cases Cited
- Andresen v. Maryland, 427 U.S. 463 (U.S. 1976) (adopts probable cause and particularity principles for searches of papers)
- United States v. Reed, 773 F.2d 477 (2d Cir. 1985) (focuses on substantial contacts in venue analysis)
- Graziano v. United States, 558 F. Supp. 2d 304 (E.D.N.Y. 2008) (reasonableness standard for electronic searches; off-site review)
- Liu v. United States, 239 F.3d 138 (2d Cir. 2000) (two-pronged test for suppression due to overbroad searches; good faith)
- Debbi v. United States, 244 F. Supp. 2d 235 (S.D.N.Y. 2003) (suppression where retention of materials outside scope of warrant egregiously extended)