Who is Tonmoy Sharma? Indian-origin pharma businessman arrested in US over $149 million healthcare fraud

Tonmoy Sharma India origin Pharma Tycoon Arrested In US (Pic credit: LinkedIn)

Indian-origin pharma tycoon Tonmoy Sharma, 61, was arrested at Los Angeles International Airport for his alleged involvement in a $149 million healthcare fraud scheme. Originally from Assam, Sharma is the founder and former CEO of Sovereign Health Group, a California-based addiction treatment network that once operated multiple facilities across the United States.

Sharma was arrested on an eight-count federal grand jury indictment, which includes four counts of wire fraud, one count of conspiracy, and three counts of illegal kickbacks for patient referrals.

Who is Tonmoy Sharma? 

Tonmoy Sharma, an Indian-origin psychiatrist and pioneer in schizophrenia research, has built a distinguished career in mental health following his medical education in Assam.

Born in Guwahati and the eldest son of the late Phani Sharma, a renowned theatre personality and cinema owner. Sharma completed his MBBS from Dibrugarh University in 1987 before moving to the United States to advance his medical and entrepreneurial pursuits.

He holds medical license from India and United Kingdom in year 1987 and 1988 respectively. His expertise in brain function, cognition, and behavioral science related to mental illnesses earned him international recognition.

He contributed extensively to psychiatric research, authoring over 200 peer-reviewed articles and co-authoring five books on schizophrenia.

Sharma also served on various editorial boards and peer-reviewed 15 medical journals, played advisory role in several clinical investigations focused on antipsychotic medications, directing more than 20 such studies throughout his career.

What is the case? 

The US Attorney’s Office for the Central District of California announced that Sharma was taken into custody for his alleged role in a healthcare fraud scheme involving over $149 million in false billings to private insurance companies between 2014 and 2020.

These charges come after a long investigation that started in 2017. Sovereign Health Group, was shut down in 2018, prosecutors alleged that under Sharma's directions, employees used misleading marketing tactics to attract patients.

Company enrolled patients into health insurance plans without their consent, and falsely promised that treatment costs would be covered by a charitable foundation.

Sovereign Health also allegedly billed insurers for unauthorized and unnecessary urine tests, resulting in over $29 million in fraudulent claims.

He is also accused of paying more than $21 million to secure patient referrals which is the key component of the alleged conspiracy. Co-defendant Paul Jin Sen Khor was also arrested and is scheduled to stand trial on July 29.

The FBI reportedly conducted raids on Sovereign Health’s treatment centers, its headquarters in San Clemente, and Sharma’s residence in San Juan Capistrano as part of the investigation. The case marks one of the largest insurance fraud prosecutions involving addiction treatment services in recent years.