Medical Doctor To Pay $40,800 To Resolve Civil Liability For Alleged Violations Of The False Claims Act

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FILE PHOTO: Signage is seen at the United States Department of Justice headquarters in Washington, D.C.

HARRISBURG, PA —The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dr. Ahmed Khan has agreed to pay the United States $40,800 to resolve civil liability for alleged violations of the False Claims Act.

According to United States Attorney, John C. Gurganus, between 2019 and 2020, Dr. Khan accepted consultation fees for ordering Durable Medical Equipment (DME) and topical pain creams for patients with whom he did not have an established provider-patient relationship.  He authorized orders for pre-selected products without any physical examination of the patients.  In many instances, Dr. Khan had no interaction at all with the patients, and in some instances, he had only a brief phone call.  Dr. Khan approved and signed orders for medically unnecessary DME (such as knee braces) and topical pain creams, in exchange for a small fee per patient from a third-party marketing company. As the prescribing physician, Dr. Khan played a key role in a larger telemedicine scheme that resulted in Medicare paying hundreds of thousands of dollars to DME companies and pharmacies for unnecessary products.

This Settlement Agreement is neither an admission of liability by Dr. Khan, nor is it a concession by the United States that its claims are not well founded.

The investigation was handled by Assistant United States Attorney, Tamara Haken, and the Affirmative Civil Enforcement (ACE) Unit within the U.S. Attorney’s Office.

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