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UNITED STATES v. STEWART CLINICAL LABORATORY, INC.

No. 80-1539.

652 F.2d 804 (1981)

UNITED STATES of America, Plaintiff-Appellee, v. STEWART CLINICAL LABORATORY, INC., Edward Morris Jorgensen and James Stewart, Defendants-Appellants.

United States Court of Appeals, Ninth Circuit.

Decided July 6, 1981.

As Amended July 8, 1981.

Attorney(s) appearing for the Case

William Bryan Osborne, Monterey Park, Cal., for defendants-appellants.

Deanne H. Smith, Asst. U. S. Atty., Los Angeles, Cal., for plaintiff-appellee; Andrea Sheridan Ordin, U. S. Atty., Los Angeles, Cal., on brief.

Before GOODWIN and SCHROEDER, Circuit Judges, and EAST, District Judge.

GOODWIN, Circuit Judge.

Edward Jorgensen, James Stewart and Stewart Clinical Laboratory appeal their convictions by a jury for offering free medical laboratory services in exchange for referring government-paid medical laboratory work, in violation of 42 U.S.C. § 1396h(b)(2)(A). We reverse the convictions.

Jorgensen and Stewart are the owners and operators of Stewart Clinical Laboratory, Inc. Dr. Donald Dorr, the administrator of a medical clinic, agreed...

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