Michael Lyons, former CEO of Lyon Real Estate, has been arrested amid a criminal investigation and allegations of secret videotapes taken of sexual acts.

Sacramento County Sheriff’s deputies arrested Lyons at his home this morning on four felony eavesdropping charges connected to the investigation.  He was booked into the Sacramento County jail at 9:20 a.m Wedensday morning.

Lyons’ bail is currently set at $60,000, and his next court date will be held on November 15 at 1:30 p.m. at the Sacramento County Courthouse.

The arrest comes weeks after investigators began looking into accusations that Lyons secretly videotaped people at his home.

According to official court documents:

“Jane Doe #2 placed an ad for her services as an escort on an internet site on 1/25/09. In documents provided to law enforcement by Lyons’ ex-girlfriend, there was a copy of an email Lyons wrote to Jane Doe #2 in an attempt to set up a date with Jane Doe #2 the following night.  This email was dated Jan 25.

Based on conversations heard between Jane Doe #2 and Lyons in both of the two videos, it is clear the videos are from two seperate occasions in which Jane Doe #2 and Lyons engaged in sexual activities.

This conclusion is supported by the fact Jane Doe #2 is observed wearing different clothing at the beginnings of both the longer videos.

Based upon the above information, I believe Jane Doe #2 was video recorded by Lyons without her consent on two seperate occasions, while engaging in sexual acts with Lyons in late Jan. 2009.”

Surveillance video obtained by CBS13 shows a man, who is said to be Lyon, laying on a bed smiling while a naked woman, who sources say is a prostitute, is standing in front of him.

Attorney Bill Portanova told CBS13 in September that there is “absolutely no evidence” Lyon committed an illegal act.

CBS13 has learned that investigators are looking into allegations that Lyon videotaped these people without their knowledge, using a series of hidden cameras in his home, in the bedroom and bathroom.

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