Does the Fourth Amendment prohibit unreasonable intrusions by private individuals who are acting as government instruments or agents?

However, the Fourth Amendment does prohibit unreasonable intrusions by private individuals who are acting as government instruments or agents. See Coolidge v. New Hampshire, 403 U.S. 443, 487, 91 S.Ct. 2022, 2048, 29 L.Ed.2d 564 (1971); United States v. Walther, 652 F.2d 788, 792-93 (9th Cir.1981). This court has recognized that there exists a "gray area" between the extremes of overt governmental participation in a search and the complete absence of such participation. Walther, 652 F.2d at 791. This case falls within the gray area.

Cases which fall within the gray are best resolved on a case by case basis relying on the consistent application of certain general principles. Id. The general principles for determining whether a private individual is acting as a governmental instrument or agent for Fourth Amendment purposes have been synthesized into a two part test. United States v. Miller, 688 F.2d 652, 657 (9th Cir.1982). According to this test, we must inquire: