Alleged secret filming of prostitutes leads to real estate magnate’s arrest

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Mike Lyon, ex-CEO of one of the leading real estate businesses in Sacramento and the foothills, has been arrested on allegations that he secretly filmed his sexual encounters with prostitutes. Lyon was arrested at his Carmichael home Wednesday morning, Sacramento County Sheriff’s Lt. Craig Hill said. The Sacramento District Attorney’s Office is moving ahead with four felony counts of recording confidential communication. The charges involve three adult victims, prosecutors said. Lyon is facing a prison term of up to three years on each count filed. Sacramento County law enforcement took up the investigation after the FBI and U.S. attorney’s office said they wouldn’t pursue the case further. The shift in jurisdictions followed an initial, 16-month investigation. As the scandal escalated in September over Sacramento media reports of secret cameras in bedrooms and bathrooms of a home owned by Lyon, the high-profile real estate magnate took a leave of absence from his CEO’s post. Doug Elmets, a Lyon Real Estate spokesman, said Lyon has since cut ties with the firm and put all his holdings in a trust for his children. Lyon, whose father founded the real estate business more than 60 years ago, has since been replaced as CEO by Larry Knapp. Lyon Real Estate has 18 offices in the region, including one in North Auburn. “Lyon Real Estate has close to 950 agents and brokers, who are individual business people working hard on behalf of their clients,” Elmets said. “”We would hope that Mike’s legal situation doesn’t interfere with their personal activities.” Lyon was released on $60,000 bail and has said he intends to clear his name. – Gus Thomson, AP reports