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Judge Won't Dismiss Pharmacist's Fraud Case

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IOWA CITY, Iowa (AP) - A judge is refusing to dismiss an indictment accusing an Iowa City pharmacist of filing improper insurance claims for life-saving drugs for hemophilia patients.

U.S. District Judge John Jarvey ruled last week that the indictment charging Michael Stein with health care fraud is legally sufficient, and the case can proceed to trial next month.

Stein, the owner of Pharmacy Matters, argued that the indictment didn't charge him with a crime because it didn't allege that he had made any misrepresentations to Wellmark, Iowa's largest insurer.

Jarvey says the indictment adequately describes Stein's alleged fraud by noting that he acted as a "pass through" entity for drugs that came from Florida. He says the indictment alleges Stein made misrepresentations about that arrangement.

Stein's pleaded not guilty. Prosecutors are seeking $3.5 million.