Indian-origin psychiatrist and pharma businessman Tonmoy Sharma was detained on May 29 at Los Angeles International Airport for his suspected role in a far-reaching $149 million healthcare fraud scheme in the US. The 61-year-old founder of the now-closed Sovereign Health Group once operated a large network of addiction treatment centers across the nation.
Allegations of Massive Fraud and Kickbacks
As stated by the US Attorney’s Office for the Central District of California, Sharma was indicted by a federal grand jury on eight criminal counts: four counts of wire fraud, one count of conspiracy, and three counts of issuing illegal remunerations for patient referrals. During 2014 to 2020, Sovereign Health purportedly filed more than $149 million of fraudulent insurance claims to private health providers.
The indictment alleges that during Sharma’s direction, the company used deceptive marketing tactics to entice patients. Sovereign employees allegedly misrepresented treatment fees as being sponsored by a charitable trust, signed patients up for insurance coverage without their knowledge, and submitted unauthorized and unreasonable urinalysis testing to insurers for payment resulting in over $29 million in fraudulent claims. The group is charged with paying more than $21 million in unlawful kickbacks to gain patient referrals.
Early Investigations and Co-Accused
Federal investigations into Sovereign Health began in June 2017, culminating in a series of FBI raids on its San Clemente headquarters, several treatment centres, and Sharma’s private home in San Juan Capistrano. The business formally closed down in 2018.
Also sued in the case is Paul Jin Sen Khor, 45, a cash management and accounts payable supervisor for the group. Khor pleaded not guilty, and his trial will start on July 29.
Sharma’s Medical Career
Born in Guwahati, Assam, Sharma graduated MBBS from Dibrugarh University in 1987 before pursuing his career abroad. He received wide acclaim as a psychiatrist, especially for his work on schizophrenia and cognitive science. Sharma possessed medical licenses in India and the UK, and had a formidable portfolio with more than 200 peer-reviewed papers and five written books.
He was a member of editorial boards of various medical journals, reviewed manuscripts for 15 publications, and served as an advisor on antipsychotic medication. In spite of his well-known stature within the medical community, the charges against him have shaken to the core the South Asian and medical communities.
Personal Background
Tonmoy Sharma is also remembered for his strong cultural roots in Assam. He is the son of the late Phani Sharma, an acclaimed filmmaker, theatre icon, and proprietor of Guwahati’s historic Anuradha Cinema. While Sharma earned global respect as a leading expert in mental health and neuroscience, the charges now overshadow his once-celebrated legacy.
