State v. Hermsdorf

605 A.2d 1045, 135 N.H. 360, 16 A.L.R. 5th 1035, 1992 N.H. LEXIS 42
CourtSupreme Court of New Hampshire
DecidedMarch 20, 1992
DocketNo. 90-181
StatusPublished
Cited by32 cases

This text of 605 A.2d 1045 (State v. Hermsdorf) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Hermsdorf, 605 A.2d 1045, 135 N.H. 360, 16 A.L.R. 5th 1035, 1992 N.H. LEXIS 42 (N.H. 1992).

Opinion

Batchelder, J.

The defendants, Gary Hermsdorf and the Queen City Pharmacy, Inc., doing business as The Medicine Shoppe (the Pharmacy) appeal their convictions in the Superior Court {Flynn, J.) for Medicaid fraud under RSA 167:17-b, 1(a) and RSA 167:17-c, 1(b). We affirm.

[362]*362In January 1985, an agent of the New Hampshire Attorney General’s Medicaid Fraud Control Unit (Fraud Unit) began investigating the Pharmacy for possible fraudulent Medicaid billing. The investigation was conducted in two ways. The first entailed interviews with Medicaid recipients who had their prescriptions filled at the Pharmacy. The investigator met with several recipients, recorded on an index card the information from the prescription label, and took a single specimen for testing. The second investigation was conducted by undercover members of the Fraud Unit who, with facsimile prescriptions, bought drugs at the Pharmacy. The specimens were then analyzed in a laboratory, and the analysis was compared to the information on the prescription labels. In nineteen instances, nine of which involved sales to actual Medicaid recipients and ten of which were established by sales to undercover agents, the label listed a brand name while the specimen was a generic item.

Upon further investigation, the Fraud Unit found that the Pharmacy or its employees had billed the New Hampshire Division of Health and Human Services as if the brand-name drug had been dispensed, and that the Pharmacy had been paid accordingly. The nineteen separate transactions resulted in fraudulent billings that ranged from $0.27 to $30.48, and the total amount fraudulently obtained was $154.21: $75.83 was from sales to Medicaid recipients, and $78.38 was from sales to undercover agents.

In December 1988, a Merrimack County Grand Jury indicted the Pharmacy for Medicaid fraud, and Gary Hermsdorf, owner and president of the Pharmacy, individually as an accomplice to the Pharmacy’s unlawful activity. The defendants were convicted by a jury after a 14-day trial, under RSA 167:17-b, 1(a) and RSA 167:17-c, 1(b). In March 1990, Hermsdorf was sentenced to 12 months incarceration, suspended, and two years probation; fined $2,000; and ordered to perform 250 hours of community service. The Pharmacy was fined $10,000.

The defendants now appeal their convictions, arguing: (1) they should not have been charged with a felony because the applicable statutes do not allow the aggregation of separate offenses into one crime and the amount of money obtained in each individual transaction was less than $100; (2) the trial court erred in applying the best evidence rule when it relied upon hearsay evidence and found that the original documents were lost or destroyed; (3) the indictment was not sufficient; and (4) the trial court impermissibly amended the indictment by giving erroneous jury instructions. We do not agree with the defendant’s contentions for the reasons which follow.

[363]*363 Aggregation.

The defendants do not challenge the jury’s finding that they fraudulently obtained money pursuant to a common scheme. Rather, they argue that the statute under which they were charged does not permit aggregation of small sums in order to create a felony count. They claim that they can be guilty, at most, of nineteen separate misdemeanors, RSA 167:17-e, 1(c). We find that RSA 167:17-c, 1(b), which provides that “[a]ny natural person who violates [the Medicaid fraud statute] shall... be guilty of... [a] class B felony if the value of the monetary award or goods or services in question exceeds $100 but does not exceed $1,000 . . . ,” does, in fact, allow aggregation.

In enacting legislation, the legislature is presumed to be aware of the common law: ‘“we will not construe a statute as abrogating the common law unless the statute clearly expresses such an intention.’” Hill v. Dobrowolski, 125 N.H. 572, 575, 484 A.2d 1123, 1125 (1983) (quoting companion cases Cooperman v. MacNeil, 123 N.H. 696, 700, 465 A.2d 879, 882 (1983) and Wisniewski v. Gemmill, 123 N.H. 701, 705-06, 465 A.2d 875, 878 (1983)). The common law generally allows aggregation of several thefts into one crime where “the series of takings was motivated by a single larcenous impulse or intent.” P. Guthrie, Annotation, Series of Takings Over a Period of Time as Involving Single or Separate Larcenies, 53 A.L.R. 3d 398, 401 (1973) (and cases cited therein). Our prior decisions comport with this rule. State v. Williams, 133 N.H. 631, 635, 581 A.2d 78, 81 (1990) (permitting the State to aggregate “assuming proof of a common theft scheme”); see also State v. Merrill, 44 N.H. 624 (1863). State v. Sampson, 120 N.H. 251, 256, 413 A.2d 590, 592 (1980), allowed aggregation where a statute expressly permitted it, but went beyond a statutory rationale.

‘“[W]hen it appears that the successive takings are actuated by a single continuing, criminal impulse or intent or are pursuant to the execution of a general larcenous scheme, it has been held or stated that such successive takings constitute a single larceny, regardless of the extent of the time which may have elapsed between each taking.’”

Id. at 256, 413 A.2d at 592 (quoting Anderson, 2 Wharton's Criminal Law & Procedure § 450, at 76 (1957)). Here, there appears to be sufficient evidence for the jury to have found a general larcenous scheme, and the defendants have not argued otherwise.

The defendants urge us to conclude that the felony thresholds in the various enactments relating to fraud imply a legislative [364]*364intent to permit aggregation in some cases but not in others. Some of these enactments, by referring to RSA 637:2, V, expressly permit aggregation, but require $500 to constitute a felony, e.g., RSA 638:4, IV(a)(2) (Supp. 1991) (issuing bad checks); RSA 638:5, 111(a)(2) (fraudulent use of credit card); RSA 638:7, 111(a)(2) (commercial bribery); RSA 638:8,11(a)(1) (sports bribery, $1000 threshold), while others, including the one at issue here, are silent on aggregation, but carry a lower $100 threshold to constitute a felony, e.g., RSA 638:15, 11(b) (fraud on women, infants, and children (WIC) program); RSA 167:17-c, 1(b) (welfare fraud). In making this argument, the defendants ask for a greater inference than can reasonably be drawn. Accordingly, we hold that the defendants were properly charged with felonies.

Evidentiary Claims

The defendants claim that the court erred in allowing the investigator’s notes to be used at trial. There is no dispute here that the labels on the vials constitute original writings within the meaning of the best evidence rule, N.H. R. Ev. 1002, which provides that “[t]o prove the content of a writing,... the original writing... is required, except as otherwise provided in these rules____” Thus, the investigator’s notes containing information transcribed from the labels must be excluded unless they fit within an exception to the best evidence rule.

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Cite This Page — Counsel Stack

Bluebook (online)
605 A.2d 1045, 135 N.H. 360, 16 A.L.R. 5th 1035, 1992 N.H. LEXIS 42, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-hermsdorf-nh-1992.