Smith v. Superior Court

Opinion

STONE, P. J.

Petitioner, Vernon R. Smith, seeks a writ of prohibition to bar criminal proceedings against him in the Superior Court of Madera County. An information was filed on February 10, 1969, charging Smith with 11 counts of violation of Penal Code section 72 (presenting false claims to a state agency), each a felony, and 11 counts of violation of Penal Code section 532 (obtaining property by false pretenses), each a misdemeanor.

Petitioner was tried to the court without a jury and found guilty of count 1, whereupon the district attorney moved to dismiss counts 2 through 22 in the interests of justice, and the motion was granted. On July 2, 1969, petitioner moved for a new trial, which was granted. On November 4, 1969, the People moved for reinstatement of counts 2 through 11, the dismissed felony counts, and on November 14, 1969, over petitioner’s objection, said counts were reinstated. Smith brought this petition for writ of prohibition.

Briefly, the facts are that Smith operated the Madera Ambulance Service during the period October 1967 to September 1968. From March 1966 to July 1968 he employed Betty Marie Smith, his sister-in-law, as his bookkeeper. She prepared claims for Medi-Cal or Medicare for ambulance services rendered, which claims were based upon information supplied by Smith. The claims which are the basis for the charging accounts of the information were signed by either Smith or her, and presented to California Blue Shield for paymenTby the State of California under the state financial Medicare program. Blue Shield, the fiscal intermediary for the state program, kept the records of services and eligibility. Upon approval of a claim, Blue Shield stored it in a “computer bank,” but prior to printing checks in payment of claims approved by Blue Shield, the claims .had to be certified

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by a State of California certifying officer and the funds transferred from the Health Care Deposit Fund of the State of California to a segregated bank account in the Bank of California.* Payment by Blue Shield check was made only after such certification by a state certifying officer. The segregated account in Bank of California, Blue Shield, was used solely for payment to providers under the state financial Medicare program.