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Psychiatrist Mohammed Abdul Rahman Khan illegally prescribed drugs for sale on streets, officials say

By 69 News, follow: @69news, news@wfmz.com
Published On: Dec 24 2013 08:41:04 AM CST
Updated On: Oct 03 2013 06:40:50 PM CDT

A psychiatrist has been arrested on charges he issued prescriptions to patients without a medical exam so that the drugs could be resold on the streets.

READING, Pa. -

A Reading psychiatrist has been arrested on charges he issued prescriptions to patients without a medical exam so that the drugs could be resold on the streets, where officials said he was known as the "candyman."

Mohammed Abdul Rahman Khan, owner of Berks Psychiatry, was arrested on multiple felony counts, including administration of controlled substance by a practitioner, insurance fraud and conspiracy, following a joint investigation by the Berks County district attorney and Pennsylvania attorney general's offices.

Khan prescribed more than 145,000 drugs in more than 3,100 prescriptions between January and October 2012 while agents were conducting an undercover investigation of Khan's practice, which has offices in Reading and in Pottsville, according to court documents obtained by 69 News.

"We do not receive a lot of complaints about doctors, but when we do, we need to investigate those," said Berks County District Attorney John Adams.

The undercover agents, equipped with voice recorders, posed as patients, paying $160 for their initial visits and $80 per subsequent visit for "med checks," according to the court documents.

The agents observed waiting rooms crowded with as many as 45 patients, with those paying cash being allowed to see Khan sooner than those covered by insurance, officials said.

Each of the undercover agents' visits with Khan lasted no more than a few minutes, with at least one lasting only 90 seconds. During that time, official said, Khan never performed a medical examination or physical evaluation, according to court documents.

"History tells us that this type of dispensing, with no medical necessity, as is set forth in the affidavit of probable cause, is not in the best interest of our community," Adams said. "This is not what we expect from practitioners in the medical field."

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The undercover part of the probe concluded Oct. 16, 2012, when officers raided Khan's offices at 146 South 5th St. in Reading and 619 Mahantongo St. in Pottsville and seized hundreds of patient files.

At the time, a person identifying herself as one of Khan's employees in Reading told 69 News the raid was "no big deal." Khan, himself, denied the allegations Thursday to WFMZ's Bo Koltnow, who found his waiting room in Reading still crowded with patients.

Court papers, however, indicated Khan told police he knew his employees were falsifying medical records, that he prescribed the drugs knowing they were not medically justified, and that he knew patients would sell the prescriptions on the street.

The agents also searched Khan's home in Exeter Township and seized $7.3 million from his personal and business bank accounts and $200,000 in cash from a safety deposit box.

Khan, 43, is free on $2 million bail.

According to Berks Psychiatry's website, "Khan is a board certified psychiatrist with nearly a decade of successful practice behind him."

In addition to his private practice, Khan was an attending psychiatrist at St. Joseph Medical Center.  But St. Joe's officials tell us he hasn't worked there since 2009.

Longtime employees indicated in court documents that Khan's practice was at first legitimate, but it changed over time.