Kathleen G. Kane - Pennsylvania Office of Attorney General - Protecting Pennsylvanians

October 3, 2013

Reading doctor known as "Candyman" arrested for prescribing controlled substances to drug-dependent patients

HARRISBURG - Attorney General Kathleen G. Kane and Berks County District Attorney John Adams today announced the arrest of a Reading doctor known as "Candyman" for allegedly prescribing controlled substances to drug-dependent patients.

Dr. Mohammed Abdul Rahman KhanAttorney General Kane said the defendant, Dr. Mohammed Abdul Rahman Khan, 42, 59 Linree Ave., Reading, Berks County, allegedly wrote more than 3,100 prescriptions for more than 145,000 pills including Adderall, Ritalin and Xanax without medical necessity.

"During on office visit, undercover agents saw at least 40 patients waiting for the 'Candyman' to write them prescriptions for drugs they either were addicted to or to allegedly sell on the streets of Reading," said Attorney General Kane. "Evidence indicated one even overdosed but still subsequently received prescriptions from Dr. Kahn. His alleged actions are a disgrace to the medical profession, and my office will prosecute to the fullest extent of the law any individual who unlawfully abuses their role in medicine or any other profession to the detriment of others."

Attorney General Kane said the investigation began in August 2011 when the Berks County District Attorney's Office provided information from a confidential informant that Dr. Khan was issuing numerous prescriptions for controlled substances, knowing that his patients were reselling the drugs obtained from filling his scripts.

Between January 2012 and October 2012, an undercover Berks County Detective and an agent from the Attorney General's Bureau of Narcotics paid $160 for initial visits and then $80 for subsequent visits with Dr. Khan. The visits lasted less than five minutes each, where Dr. Khan provided scripts for Adderall, Xanax and Clonazepam, after doing nothing more than a cursory patient history.

On October 16, 2012, BNI agents executed search warrants on Dr. Khan's residence, bank accounts and two office locations: 146 S. 5th St, Reading and 619 Mahantongo St. 3rd Floor, Pottsville, Schuylkill County. Hundreds of patient files were seized and agents found numerous, routine false entries in the patient files, apparently entered by Dr. Khan merely to justify the prescriptions and the overbilling. Agents found many of the patient histories and complaints to be nearly identical.

According to the criminal complaint, Kahn also allegedly created a scheme to overbill insurance companies by falsifying billing records and patient files.

Dr. Kahn is charged with six felonies including:

  • One count of unlawful prescription of controlled substance (Adderall and Ritalin) by practitioner, which carries a maximum sentence of 15 years and a maximum fine of $250,000;
  • One count of unlawful prescription of controlled substance (Xanax), which carries a maximum sentence of three years and a maximum fine of $10,000;
  • One count of acquisition of controlled substance (Adderall and Ritalin) by misrepresentation, fraud, forgery, deception or subterfuge (as an accomplice) which carries a maximum sentence of 15 years and a maximum fine of $250,000;
  • One count of acquisition of controlled substance (Xanax) by misrepresentation, fraud, forgery, deception or subterfuge, which carries a maximum sentence of three years and a maximum fine of $10,000;
  • One count of insurance fraud which carries a maximum sentence of seven years and a maximum fine of $15,000; and
  • One count of criminal conspiracy for the unlawful prescription of a controlled substance, which carries a maximum sentence of 15 years and a maximum fine of $250,000.

Dr. Khan was preliminarily arraigned by Magisterial District Nicholas Bentz, who set bail at $2 million, unsecured. A preliminary hearing is scheduled for October 18, 2013.

(A person charged with a crime is presumed innocent until proven guilty.)

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