By Sam Stanton, Marjie Lundstrom and Bill Lindelof
sstanton@sacbee.com
Real estate executive Michael Lyon was arrested this morning on charges that he secretly filmed sex acts with three women inside his home, at least one of them an "escort," authorities said.
Lyon, 54, faces four felony counts involving three alleged adult victims, the Sheriff's Department said.
He will be charged with surreptitious filming of sexual encounters he had with the women in 2008 and 2009. The encounters apparently occurred inside the Arden Arcade home he shared with his then-wife, some of them at Christmas time.
Lyon was released this morning from jail on $60,000 bail and exited the jail with his attorney and public relations man.
"These are all allegations and I'm intent on clearing my good name," Lyon said, declining to take questions.
He referred all questions to his attorney and left in an automobile that was parked at the curb.
Detectives arrived at Lyon's Carmichael home at 7:45 this morning and "caught him completely off guard," said sheriff's Lt. Craig Hill, who recently retired but was brought in especially for this case.
About eight detectives searched the Lyon home and a similar number searched his ex-wife's home. The family's vacation home in Homewood, near Lake Tahoe, also was searched.
Sacramento County Assistant Chief Deputy District Attorney Jeff Rose said a priority of investigators is to examine the new electronic material seized from the homes, which may shed light on Lyon's past as well as current activities.
Authorities already have reviewed recordings turned over by Lyon's ex-wife, Kimarie "Kim" Lyon, and a former girlfriend.
"Now we have three sets of data," said Rose.
However, the "voluminous" amount of material that Kim Lyon placed into storage in 2006 falls beyond the statute of limitations for prosecution, he said.
For the alleged crimes, prosecutors have a three-year window in which to bring charges from the date of the incidents.
Rose said the older material could be used at trial, though, to demonstrate a pattern of conduct and an intent to secretly record houseguests, he said. Lyon told an investigator last year that his surveillance equipment was for security purposes.
During the investigation, the three women were shown images and asked to identify themselves engaging in sex acts with Lyon, according to the affidavit in support of the arrest warrant. At one point in a video, one woman sees an object she believes to be a camera.
"She points to the camera that is recording her and Lyon with a surprised look on her face and asks what it is," the document states. "Lyon tells her it is just equipment and it is nothing. She asks if it is a camera and Lyon told her it was not."
At the beginning of longer videos of a second woman, Lyon is seen adjusting the camera, the affidavit states. That woman had placed an ad for services as an "escort" on an Internet site.
A third woman is depicted in at least six video files. At one point, Lyon can again be seen adjusting the camera, the document states.
"Therefore he is clearly aware the video camera is present," the affidavit reads.
Lyon's GMC Yukon, with its distinctive FLYON HI license plate, was parked in front of the house this morning.
Hill said Lyon appeared to have just awakened when investigators arrived. Lyon had a female house guest who is not involved in the case and was released, Hill said.
Detectives searched the home for computers and other electronic storage devices that may contain evidence in the case, Hill said. Authorities are investigating whether Lyon's alleged taping activities continued even after he learned he was under investigation, Hill said.
Lyon's attorney, William Portanova, questioned the strength of a case built on testimony from the women.
"That's the allegation," Portanova said of the claim that Lyon secretly filmed the women, "although, frankly, the credibility of the complaining witnesses in this case is suspect."
"These are women who were paid for their time, and now they're being paid for their testimony," he said, adding that he believes the women will be promised immunity from prosecution in exchange for testimony.
Although Lyon stepped down as CEO of Lyon Real Estate shortly after the scandal erupted in late August, the arrest poses fresh public-relations problems for the firm.
"As it relates to the company, clearly there are challenges," said Doug Elmets, a spokesman for the firm, which is the largest in the area. "But it is a strong brand. It is important that it is a company that is well known throughout this region with 60 years of success...The company and the brand will stay the course."
More than 30 agents have jumped to rival firms in the past few weeks, according to Department of Real Estate records. But Elmets said the Lyon firm has hired roughly as many as have quit, although they haven't shown up on the state agency's records yet. He said the firm employs about 950 agents and brokers.
A felony conviction could cost Lyon his real estate license. The Department of Real Estate has the authority to suspend or revoke a license if the holder is found guilty of a felony or a crime "substantially related" to real estate work.
In this case, where the alleged acts are not directly related, the department would not enter into any investigation until the case is concluded and meets those parameters, said Joe Carrillo, spokesman for the Department of Real Estate.
"Nothing's automatic. Everything would be reviewed," he said.
The state's real estate commissioner has ultimate authority over whether to suspend or revoke a license.
Bee staff writer Dale Kasler contributed to this report. Call The Bee's Sam Stanton, (916) 321-1091.