Judge Dismisses Fraud Charges Against Feminist Health Center

Ending a controversial case with political overtones, Chico Municipal Judge Brian L. Rix on Tuesday dismissed all charges of unemployment insurance fraud against the Chico Feminist Women’s Health Center.

In an unexpected decision ending one of Butte County’s longest preliminary hearings, Rix ruled that charges against the center and its directors were filed after the statute of limitations had expired.

“We’re very happy; we’re glad it’s over,” said Dianne Hasper, a defendant and center spokeswoman. “We’re glad we were able to go up against these guys and win.”

Rix, who earlier had refused to dismiss the case for a long series of other alleged procedural errors, offered no opinion on the merits of the case when he threw it out.

The center was accused of defrauding the state unemployment insurance fund by having employees file for jobless benefits while allegedly working as clinic volunteers. Prosecutors said the women secretly were being paid at the same time, making them legally ineligible for benefits. Center officials said the women were unpaid volunteers who were reimbursed only for out-of-pocket expenses.

Supporters of the Chico center, chiefly other feminist health centers and politically active nonprofit agencies, complained that the decision to prosecute was motivated by the Deukmejian Administration’s opposition to abortion.

The Chico center, which has branches in Sacramento and three other Northern California cities, offers abortions among its patient-oriented gynecological services.

Rix found that an investigator for the Employment Development Department knew as early as May of 1983 that the alleged volunteers at the center also were receiving jobless benefits.

But for a variety of reasons--including bureaucratic indecision, staffing shortages and a legal fight over the confidentiality of patient records--charges were not filed until January of 1987. Under the statute of limitations, charges must be filed within three years.