In a startling development, Tonmoy Sharma, an Indian-born pharmaceutical entrepreneur, was apprehended at Los Angeles International Airport in connection with a massive $149 million healthcare fraud scheme that targeted insurance providers. Sharma, 61, originally hails from Guwahati, Assam, and is the founder and former chief executive of Sovereign Health Group, a company specializing in addiction treatment.
Educated in medicine at Dibrugarh Medical College and having completed his internship at Safdarjung Hospital in Delhi, Sharma now faces serious legal challenges. On May 29, federal authorities indicted him on eight counts, including wire fraud and conspiracy, accusing him of submitting over $149 million in false claims to insurers. The company is alleged to have enrolled patients into fraud insurance plans without their consent, employing deceptive methods.
A significant portion of the fraudulent billing—exceeding $29 million—stemmed from unauthorized urine tests charged to insurers. Moreover, Sharma is accused of distributing illegal kickbacks exceeding $21 million as incentives for patient referrals, a practice that violates federal laws.
Alongside Sharma, co-accused Paul Jin Sen Khor was arrested and has pleaded not guilty. His trial is scheduled for late July.
The investigation, launched in 2017, focused on Sovereign Health Group’s now-closed network of addiction treatment centers in Southern California. Law enforcement officials, including the FBI, conducted raids on the company’s facilities, its headquarters in San Clemente, and Sharma’s home in San Juan Capistrano. Sovereign Health ceased operations in 2018.
Tonmoy Sharma’s professional background is rooted in psychiatry, with research centered on brain function, cognition, and behavioral health in mental illness. He is the eldest son of the late Phani Sharma, a well-known sports promoter and cinema hall proprietor. Sharma earned his medical degrees in India and holds licenses from both the Indian Medical Council and the United Kingdom’s General Medical Council.
Beyond his corporate ventures, Sharma is an author of multiple books on mental health treatment and long-term care for substance use disorders, reflecting his deep involvement in the medical field.
This fraud case underscores the critical need for vigilance in healthcare practices and serves as a reminder of the complexities surrounding healthcare fraud investigations.
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