Indian-origin pharma tycoon arrested in US for $149-million fraud
In a shocking development, Tonmoy Sharma, a 61-year-old Indian-origin pharmaceutical tycoon, was arrested at Los Angeles International Airport on charges of healthcare fraud. The alleged fraud, which is estimated to be worth $149 million, involves submitting false claims to health insurers and paying illegal kickbacks for patient referrals.
Sharma, who is the founder and former CEO of Sovereign Health Group, an addiction treatment provider, was arrested by the US Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI) on January 27, 2022. He is currently being held without bail pending a court appearance.
According to the indictment, Sharma allegedly submitted fraudulent claims to health insurers on behalf of Sovereign Health Group, which operated several addiction treatment facilities across the United States. The claims were made for services that were either not provided or were not medically necessary. The scheme is believed to have started in 2013 and continued until the company went out of business in 2019.
In addition to the fraudulent claims, Sharma is also accused of paying $21 million in illegal kickbacks to medical professionals who referred patients to Sovereign Health Group. The kickbacks were allegedly disguised as “consulting fees” or “marketing agreements,” but were actually payments to induce the physicians to refer patients to the company.
The indictment alleges that Sharma and his co-conspirators used the fraudulent proceeds to fund a lavish lifestyle, including buying luxury properties, private jets, and expensive cars.
The news of Sharma’s arrest comes as a surprise to many, given his reputation as a successful entrepreneur and philanthropist. Sharma was a well-known figure in the Indian-American community, and had been involved in various charitable initiatives over the years.
However, investigators believe that Sharma’s charitable efforts were just a smokescreen for his illegal activities. “Tonmoy Sharma’s alleged scheme was a sophisticated and brazen fraud that exploited vulnerable patients and the healthcare system for personal gain,” said United States Attorney Nick Hanna in a statement.
The investigation into Sharma’s activities began in 2019, when the DEA and FBI launched a probe into Sovereign Health Group’s business practices. The probe was sparked by complaints from health insurers and medical professionals who had concerns about the company’s billing practices.
In the wake of Sharma’s arrest, several former employees and business associates have come forward to express their shock and disappointment. “I had no idea what was going on behind the scenes,” said one former employee, who wished to remain anonymous. “We thought we were working for a legitimate company that was providing much-needed services to patients. It’s devastating to learn that we were all part of a massive fraud.”
The arrest of Tonmoy Sharma serves as a stark reminder of the importance of ethical business practices in the healthcare industry. As the investigation continues, it is likely that more details will emerge about the extent of Sharma’s fraud and the impact it had on patients and healthcare providers.
In the meantime, Sharma’s legal team has pledged to vigorously defend him against the charges. “We will review the evidence and present our case in court,” said Sharma’s lawyer, who declined to comment further.
Regardless of the outcome of the legal proceedings, Sharma’s arrest serves as a wake-up call for the healthcare industry and the Indian-American community. It is a reminder that no one is above the law, and that even the most successful and well-respected individuals can fall victim to the temptation of fraud and corruption.
