Here is a simplified version:
def sublist(a,b):
try:
return a[0] in b and sublist(a[1:],b[1+b.index(a[0]):])
except IndexError:
return True
>>> print sublist([1, 12, 3],[25, 1, 30, 12, 3, 40])
True
>>> print sublist([5, 90, 2],[90, 20, 5, 2, 17])
False