Dr. Adnan Khan Indicted for Controlled Substance and Fraud Charges

Burlington, VT – The grim halls of federal court in Burlington echoed with the chilling charge against Dr. Adnan S. Khan, M.D., a 48-year-old New Hampshire physician, who yesterday afternoon made his initial appearance on charges of conspiring to distribute controlled substances and commit health care fraud.

According to court documents, Khan, through his clinic network New England Medicine and Counseling Associates (NEMCA), which spans Vermont, New Hampshire, and Maine, is accused of distributing drugs outside the usual course of professional practice. He allegedly demanded cash payments from patients who were insured by Medicare and Vermont Medicaid, even though they could have received prescriptions at no cost.

The allegations further delve into Khan’s prescribing practices, with claims that he knew some patients were abusing or diverting the drugs while also ordering unnecessary urine drug tests and soliciting kickbacks from laboratories. All this while federal health care programs paid for these fraudulent activities.

With 13 counts of conspiracy to distribute controlled substances, illegal distribution, conspiracy to commit health care fraud, and health care fraud against him, Khan faces a daunting sentence if convicted: up to 20 years for the drug charges and an additional 10 years for each healthcare fraud count.

As a condition of his pre-trial release, Khan is barred from writing prescriptions for controlled substances. A team of federal law enforcement agencies, including the DEA, HHS-OIG, FBI, and Vermont Attorney General’s Office, are collaborating to investigate this case.

This grim tale is just another chapter in the fight against medical professionals who abuse their power for illegal gain. The Fraud Section of the Criminal Division and U.S. Attorneys’ Offices across the country are relentless in their pursuit of justice, with over 5,400 defendants charged since the Health Care Fraud Strike Force Program began in 2007.

The Vermont Attorney General’s Office, Medicaid Fraud and Residential Abuse Unit is a crucial partner in this fight, with significant funding from HHS-OIG. For more information on this ongoing battle against health care fraud, visit www.justice.gov/criminal/criminal-fraud/health-care-fraud-unit.