United States v. Johnny Edward Hodge, Linda S. Jones and James A. Herrin

SPRECHER, Circuit Judge.

The two major issues in this appeal are the effect of Rakas v. Illinois, - U.S. -, 99 S.Ct. 421, 58 L.Ed.2d 387 (1978) upon standing to raise Fourth Amendment rights and our declination to adopt a per se rule that contingent fee arrangements with informants are invalid.

I

In the middle of September, 1977, the Drug Enforcement Administration employed Karl Hobbs as a confidential informant. Shortly thereafter Hobbs contacted his second cousin, defendant James Herrin, in regard to the possible purchase of drugs. In the meetings which followed, Hobbs was customarily searched…