California
California Supreme Court Justice Edward Panelli dies at 92
Justice Edward Panelli, who rose from a hardscrabble childhood in Depression-era Santa Clara Valley to the state’s highest court, died Saturday evening in Saratoga at the age of 92.
Panelli’s illustrious legal career spans six decades, beginning as a lawyer in the 1950s, then serving as a Superior Court judge before his appointment to the California Supreme Court in 1985. After retiring, he continued to work as an arbitrator, mediator, legal scholar and educator.
Panelli’s son, Jeff, told this newspaper he would like his father to be remembered as a “hardworking and humble” man, the son of Italian immigrants.
“He was a fair, hardworking man who came from very humble roots. He always kept his immigrant roots close to his heart and kept that as the driving force in his life,” Jeff said. “English was his second language. He never forgot his community and transcended political and idiological thought with common sense. He was a common man.”
In a previous conversation, Edward Panelli talked about his understanding of the human condition and how that affected his judicial career.
“I’ve kinda seen life from the street,” Panelli told Mercury News staff writer John Hubner in a 1986 interview for West magazine. “I know when to zig and when to zag, when to duck and when not to duck. I may not be Oliver Wendell Holmes, but I know what makes people tick. I know how they hurt and why they hurt. I’ve got a much broader feel of the world than if I’d come from a cloistered or protected environment.”
Panelli brought to his career the lessons of living without much.
He was born at home in Santa Clara to Italian immigrants. Pidale Panelli wrestled 100-pound gunnysacks of prunes; Natalina Panelli toiled in the packing sheds, sometimes two shifts a day. Young Edward learned the value of his own work in a field of onions, pulling them for 40 cents an hour.
He earned a tuition scholarship to Santa Clara University in 1949 and graduated with honors. After moving on to SCU’s law school, he finished at the top of his class. His father, who was 54 when Edward was born, died 10 days after his son passed the bar exam in 1955. The new lawyer married Lorna Mondora in 1956, and they had three sons. His mother was 95 when she died in 1990.
Panelli is survived by his sons, Tom, Jeff and Mike, and three grandchildren. Panelli’s wife died in 2019.
Panelli’s mentor at the university was the Rev. Patrick Donohoe, a Jesuit political science professor. When Donohoe later became SCU president, he directed some legal work to his former student, then practicing with cousin Louis Pasquinelli. Panelli later became an SCU trustee and chairman of the board in the 1980s.
His first appointment to the bench was in 1972 by then California Governor Ronald Reagan, and he served all manner of duty in 11 years as a Santa Clara County Superior Court judge: juvenile, civil, probate, family, and criminal courts.
“When I was a juvenile judge, I used to walk out of the courtroom and go around and talk to people,” Panelli said in the 1986 interview. “People would say, ‘Gee, you don’t act like a judge.’ I’d say, ‘If I start to act like a judge, maybe somebody ought to kick me in the ass.’”
He got to use his one-on-one skills after serving on the 1st District Court of Appeal in San Francisco. He then was appointed in San Jose by former Gov. Jerry Brown as presiding judge of the new 6th District appellate branch. In a storied settlement between litigants whose demands had been stuck for 18 months at $2 million vs. zero, Panelli managed a settlement at $665,000 in two days.
His jurisprudence changed dramatically with his next appointment in 1985.
In his eight years on the state Supreme Court, the death penalty did not define Panelli’s tenure, but it certainly dominated his first year in 1986.
Panelli had joined the court late in 1985, the first of Gov. George Deukmejian’s appointments, and he had to stand for reconfirmation the following fall. On the ballot, too, were justices Rose Bird, the chief, and Cruz Reynoso and Joseph Grodin, as well as the court’s senior liberal, Stanley Mosk, and conservative Malcolm Lucas. Bird and the liberals had overturned numerous death penalty verdicts and were the targets of Deukmejian, a coalition of conservative politicians, and special-interest groups.
Panelli chose to distance himself from the battle — so much so that he chose to run in and complete the New York Marathon in under four hours two days before the November election. But he also acknowledged in the 1986 interview with Hubner that his tough upbringing didn’t forecast his stance:
“You would think that my background would incline me to be liberal because I’ve seen some injustices and had some economic difficulties. On the other hand, I tend to be conservative because I’ve been through it and I think, ‘By golly, if I can do it, why can’t everybody?’
“I tend to be a little bit more severe on punishment. I understand the impact environment has, but you can’t use that as an excuse. Growing up, I was always told that you are responsible for the consequences of your actions. If you break the law and get caught, you’re going to pay a price. To me, that’s how the criminal justice system works.”
He survived the 1986 vote, but Bird, Reynoso, and Cruz didn’t, and the court gradually turned into a bench full of Republicans, with Mosk still serving in his late 80s (Mosk was 86 on Sept. 4, 1998).
Panelli said friends had known for years that he would probably serve only about 20 years as a judge. He could have retired with full pension benefits in March 1993 when he was 61 but said he delayed his departure until February 1994 after Chief Justice Malcolm Lucas asked him to stay on.
He was succeeded by Kathryn Mickle Werdegar, an appellate justice who had been Justice Panelli’s senior staff attorney during his first six years on the Supreme Court.
Panelli’s tenure in the California Supreme Court marked several noteworthy majority opinions. Chief among them was the ruling that surrogate-motherhood arrangements did not exploit poor women. “A surrogate’s agreement to bear another woman’s child is a valid contract,” he wrote.
There will be a memorial open to the public on Aug. 16 at 2 p.m. at Mission Santa Clara de Asis at 2 p.m.
Staff writer Ryan Macasero contributed to this story
Originally Published:
California
5.6 earthquake strikes near Ukiah, triggers alerts across Northern California
Redwood Valley, Calif. — A 5.6 magnitude earthquake shook Northern California on Wednesday morning, according to the U.S. Geological Survey.
The quake was centered 7 miles north of Redwood Valley in Mendocino County, north of Ukiah, and east of Highway 101. It had a depth of 5.0 miles.
A ShakeAlert notification went off on many people’s phones moments before the earthquake hit at 8:10 a.m., initially forecasted as a 6.1 magnitude quake by the U.S. Geological Survey (USGS) and downgraded moments later.
People across Northern California felt the quake. Reports came in from as far away as Eureka, Redding, Sacramento, and the Bay Area. Most people reported light to moderate rolling and shaking.
Since the initial quake, several aftershocks have hit the same area. Three smaller quakes between 2.6-2.7 magnitude were detected in the same area between 8:17 a.m. and 9:06 a.m., and are expected to continue.
So far, there have not been any reports of major damage or injuries.
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California
DOJ charges 10 Southern California defendants in largest federal healthcare fraud crackdown in US history
Laura Ingraham: Fraudsters beware!
The Department of Justice announces the largest healthcare fraud takedown in U.S. history, charging 455 defendants across 45 states. They allegedly stole $6.5 billion from Medicare and Medicaid through wound care schemes and other fraudulent claims. Some funds were used for luxury homes and vehicles like a $135,000 Maserati.
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Federal authorities on Tuesday charged 10 Southern California defendants in a series of healthcare fraud schemes, including one case involving nearly $270 million in fraudulent Medi-Cal claims and another that allegedly defrauded Medicare out of approximately $27 million.
The charges were part of the Justice Department’s broader “2026 National Health Care Fraud Takedown,” which resulted in charges against 455 defendants nationwide in schemes involving more than $6.5 billion in alleged fraud.
Acting Attorney General Todd Blanche described the operation as “the greatest combined federal and state effort in combating healthcare fraud in history.”
“Fraudsters can no longer rip off American taxpayers,” Blanche said during a news conference announcing the initiative. “If you seek to harm or cheat Americans, we will find you, seize any assets and prosecute you to the fullest extent of the law.”
FBI ADDS 2 FUGITIVES TO ‘MOST WANTED FRAUDSTERS’ LIST AMID HISTORIC $6.5B HEALTHCARE TAKEDOWN: PATEL
Acting Attorney General Todd Blanche speaks during a news conference announcing what federal officials described as the largest healthcare fraud takedown in U.S. history, resulting in charges against 455 defendants nationwide. (Ken Cedeno / AFP via Getty Images)
In the Central District of California, federal prosecutors brought criminal charges against 10 defendants accused of defrauding government-funded healthcare programs or abusing their positions as medical professionals to illegally prescribe controlled substances.
The U.S. Attorney’s Office for the Central District of California said five individuals were arrested in the greater Los Angeles area for allegedly participating in a scheme that involved submitting nearly $270 million in fraudulent claims to Medi-Cal for expensive prescription drugs.
Among those charged was Christina Mareik, 61, also known as Christina Marie Sanchez Hernandez, of Whittier.
HOSPICE FRAUD USES STOLEN IDENTITIES FOR FAKE PATIENTS
The Justice Department announced charges against 10 Southern California defendants in connection with multiple healthcare fraud schemes. (Department of Justice)
Prosecutors allege Mareik helped facilitate fraudulent prescriptions that generated nearly $270 million in claims to Medi-Cal, which ultimately paid out more than $178 million.
According to prosecutors, the claims involved expensive drugs containing low-cost generic ingredients that were either not medically necessary or were never provided to the purported recipients.
Authorities said Mareik also sent thousands of fraudulent prescriptions to a co-conspirator and caused the submission of fraudulent prescriptions under her own name.
LOS ANGELES HOSPICE FRAUD REACHES BILLIONS AS MEDICARE PROVIDERS SCAM FEDERAL SYSTEM WITH FAKE COMPANIES
Federal prosecutors allege Southern California defendants participated in schemes that defrauded Medicare and Medi-Cal of hundreds of millions of dollars. (Department of Justice)
Mareik was arrested June 17 and charged with healthcare fraud.
The charges also include a San Fernando Valley man accused of operating hospice care companies that fraudulently billed Medicare approximately $27 million, according to prosecutors.
Prosecutors also charged Oren David Shachar, 59, of Van Nuys; Abraham Shin, 66, of Corona; and Jeannie Choi, 57, of Torrance.
The three defendants face a 16-count indictment alleging they conspired to defraud Medicare out of approximately $27 million.
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The charges include conspiracy to commit healthcare fraud, healthcare fraud, aggravated identity theft, monetary transactions involving criminally derived property exceeding $10,000, and violations of the Anti-Kickback Statute.
Fox News Digital’s Alexandra Koch contributed to this report.
California
Opinion: California is about to get a windfall. Let’s not blow it.
The IPOs of SpaceX, OpenAI and Anthropic could deliver billions of dollars to California’s coffers.
We’ve seen this movie before.
In 2022, California recorded a nearly $100 billion surplus, saved just $10 billion in its rainy day fund and then spent the rest. Two years later, a $56 billion deficit loomed.
Now, with the state facing ongoing operating deficits of more than $10 billion, we’re back in familiar territory.
The coming IPO windfall is a rare second chance. But we’ll only benefit from it if we first fix the structural flaw that’s caused us to squander every previous boom — a budget reserve that isn’t built to hold what we put in it.
The stakes this time are higher than ever. The war in Iran raised recession risk, and the federal government is systematically dismantling the funding streams California has depended on for decades.
When Washington retreats, Sacramento has to choose: cut services, raise taxes or have enough saved to bridge the gap. Right now, we don’t have enough saved.
We’re not outside observers wringing our hands. We helped shape the fiscal architecture the state is now straining against, and we’re here to say: It needs to be rebuilt.
As California state controller, one of us campaigned alongside Gov. Arnold Schwarzenegger to pass Proposition 58 in 2004 — creating California’s first Budget Stabilization Account. The other authored the Assembly Constitutional Amendment that became Proposition 2 in 2014 — the stronger, harder-to-raid replacement that voters approved with 69% support.
California’s tax system is the envy of progressive states and the nightmare of budget directors. We tax the wealthy at high rates, capture enormous capital gains revenue in boom years and then discover — every single time — that the peak doesn’t last.
If California treats the IPO windfall from SpaceX, Anthropic and OpenAI as permanent revenue, our state would repeat exactly the mistake we made four years ago.
Gov. Gavin Newsom and Assemblymember Avelino Valencia have each proposed important reforms to strengthen the fund. First, they call for requiring the state to make deposits until the fund reaches 20% of the general fund total, rather than the current 10%. Second, they propose changing an arcane accounting rule that treats saving for future downturns as spending.
We see one additional opportunity to make the rainy day fund even stronger.
If we want a larger budget reserve, we have to do more than merely allow it — we need to require it. Proposition 58 taught us everything we need to know on this front: Between 2004 and 2014, with that proposition fund in place, only two deposits were made. If we want consistent deposits during the boom times, they can’t be optional.
These reforms should be a win-win for the California Legislature. A larger reserve is the most durable protection that public sector workers, social service recipients and education advocates have against the kind of emergency cuts that have repeatedly gutted programs during downturns.
It’s also the strongest argument against tax increases in a recession because you don’t need to raise taxes if you actually save during the booms.
Building a stronger rainy day fund isn’t the cautious choice. It’s the visionary one — the closest thing we have to investing in the next generation of Californians.
We built the last rainy day fund because we’d lived through the consequences of not having one. We’re making the same argument again, for the same reason except now the stakes are higher. This time, the federal backstop is weaker, and the next storm is closer than it looks.
Fix the fund this year. The next generation of Californians will thank us for it.
Mike Gatto served in the state Assembly between 2010 and 2016, and he authored the measure that created California’s current rainy day fund. Steve Westly served as state controller between 2003 and 2007, and he co-championed Proposition 58, California’s original rainy day fund. Westly chairs the 21st Century Alliance, a nonpartisan organization focused on solutions to the state’s most pressing challenges.
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