Vt. U.S. Attorney: Doctor Indicted on Charges of Unlawfully Distributing Controlled Substances and Health Care Fraud

BURLINGTON, Vermont, April 25 -- The office of the U.S. Attorney for the District of Vermont issued the following news release on April 24, 2024:

A New Hampshire doctor made his initial appearance yesterday afternoon in federal court in Burlington and was arraigned on charges related to his alleged involvement in conspiracies to illegally distribute controlled substances and to commit health care fraud.

According to court documents, Adnan S. Khan, M.D., 48, of Grantham, New Hampshire orchestrated his alleged illegal prescribing and health care fraud conspiracies through New England Medicine and Counseling Associates (NEMCA), which operated a network of clinics located in Vermont, New Hampshire, and Maine. Through NEMCA, Khan allegedly distributed drugs to individuals outside the usual course of professional practice and without a legitimate medical purpose. Khan allegedly required that patients pay cash in exchange for their prescriptions, despite many of his patients having insurance through Medicare and Vermont Medicaid. Khan allegedly prescribed the drugs knowing that at least some of his patients were abusing and diverting the drugs. In addition, Khan allegedly ordered medically unnecessary definitive urine drug testing while soliciting kickbacks and bribes from laboratories, knowing that federal health care programs would be billed for the medically unnecessary tests.

Khan is charged with one count of conspiracy to commit unlawful distribution of a controlled substance, 12 counts of illegal distribution of a controlled substance, one count of conspiracy to commit health care fraud, and two counts of health care fraud. If convicted, Khan faces a maximum penalty of 20 years in prison on the illegal distribution counts and a maximum penalty of 10 years in prison on each of the health care fraud counts.

As a condition of Khan's release pending trial, he is prohibited from writing prescriptions for controlled substances.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department's Criminal Division; U.S. Attorney Nikolas P. Kerest for the District of Vermont; Acting Special Agent in Charge Stephen Belleau and Diversion Program Manager Evangela Dortch of the Drug Enforcement Administration (DEA) New England Division; Special Agent in Charge Roberto Coviello of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Boston Field Office; Special Agent in Charge Craig L. Tremaroli of the FBI Albany Field Office; and Attorney General Charity R. Clark of the Vermont Attorney General's Office, on behalf of the office's Medicaid Fraud & Residential Abuse Unit, made the announcement.

DEA, HHS-OIG, the FBI, and the Vermont Attorney General's Office, Medicaid Fraud and Residential Abuse Unit are investigating the case.

Trial Attorneys Thomas D. Campbell and Danielle H. Sakowski of the Criminal Division's Fraud Section and Assistant U.S. Attorney Andrew Gilman for the District of Vermont are prosecuting the case.

The Fraud Section partners with federal and state law enforcement agencies and U.S. Attorneys' Offices throughout the country to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. The Fraud Section leads the Criminal Division's efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal/criminal-fraud/health-care-fraud-unit.

The Vermont Attorney General's Office, Medicaid Fraud and Residential Abuse Unit receives 75% of its funding from HHS-OIG under a grant award totaling $1,229,616 for federal fiscal year 2024. The remaining 25%, totaling $409,870 for federal fiscal year 2024, is funded by the State of Vermont.

Anyone needing access to opioid treatment services can contact HHS-OIG's Substance Abuse and Mental Health Services Administration 24/7 National Helpline for referrals to treatment services at 1-800-662-4359.

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Original text here: https://www.justice.gov/usao-vt/pr/doctor-indicted-charges-unlawfully-distributing-controlled-substances-and-health-care