People v. Marsh

58 Cal. 2d 732 (1962)

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Nature of the Case

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Facts

Marsh, Crane, and Bateson (Ds) were charged with attempted grand theft, conspiracy to commit grand theft, and conspiracy to violate section 2141 of the Business and Professions Code, the section prohibiting the practice of medicine without a license. None of the Ds possessed a medical license. Ds obtained money from the sick and the neurotic on the alleged false representation that the electric machines they possessed could cure almost any ailment. The FDA used undercover agents to solicit Ds and tape-recorded the conversations between Ds and the agents. Ds denied that they 'sold' their machines, and claimed that they only loaned them and that the payments were donations to their foundation, or rental for the use of the machines, or for instruction in how to use them. Ds charged between $175 to $2,000 labeled as a 'donation' to Ds' nonprofit organization for the 'loan' of the machines. The $175 machine was identical in design with a device used commonly by radio and TV repairmen that retails for $49.95. P charged Ds with attempted grand theft and conspiracy to commit grand theft. The basis for the charges were obtaining money by false representations. The making of the false representations and the obtaining of money by Ds was proved by overwhelming evidence. Ds' defense was that the representations were true in that the machines possessed the curative powers represented, and that even if the representations made were false they were believed by Ds to be true. Ds' beliefs were based upon certain reports received from doctors and scientists. Ds sought to enter the reports into evidence but were denied. Ds were able to testify that they relied on the reports. Ds also presented a good number of witnesses (15) who claimed to have been cured by the treatments. Ds were convicted and appealed.