Indian-origin pharma tycoon arrested in US for healthcare fraud

A US-based, Indian-origin pharma tycoon was arrested at Los Angeles Airport over his involvement in a $149-million healthcare fraud. Tonmoy Sharma, 61, is the founder and former CEO of Sovereign Health Group — an addiction treatment provider — and is originally from Guwahati, Assam.

Sharma, who studied medicine at Dibrugarh Medical College and interned at the Safdarjung Hospital in Delhi, was arrested on May 29 on an eight-count federal grand jury indictment alleging he submitted more than $149 million in fraudulent claims to health insurers. As per US Attorney's Office, Central District of California, Sovereign Health Group fraudulently enrolled patients into insurance plans without their knowledge, using deceptive tactics.

Sharma's company billed insurers for unauthorised urinalysis tests, generating over $29 million in fraudulent claims.

In addition, Sharma paid more than $21 million in illegal kickbacks for patient referrals, according to a release from the US Justice Department.

Co-defendant in the case, Paul Jin Sen Khor, was also arrested and pleaded not guilty. His trial is set for July 29.

Sharma has been charged with four counts of wire fraud, one count of conspiracy, and three counts of illegal remunerations for referrals to clinical treatment facilities, according to the US Attorney's Office of the Central District of California.

The investigation into Tonmoy Sharma's now-defunct Sovereign Health Group, which ran multiple addiction treatment centres in Southern California, was on since June 2017, according to a report by NBC Los Angeles.

The FBI raided its treatment facilities, its San Clemente headquarters and Sharma's residence in San Juan Capistrano, according to the report.

The Sovereign Health Group shut down in 2018.

WHO IS TONMOY SHARMA

A pioneer in schizophrenia research and treatment, Tonmoy Sharma, is an internationally recognised research psychiatrist. His work focussed on brain function, cognition, and human behaviour in mental illnesses. He is the eldest son of the late Phani Sharma, a renowned theatre actor, playwright, film actor, and director, who also owned Anuradha Cinema.

Coming from a culturally rich and affluent background, Sharma established his career in the US after earning his MBBS from Dibrugarh University, Assam, in 1987. He obtained his first medical licence from the Indian Medical Council in 1987, followed by a second from the General Medical Council of the United Kingdom in 1988.

Throughout his career, Sharma made significant contributions to psychiatric research. He has peer-reviewed for 15 international medical journals, served on multiple editorial boards, and participated in several advisory groups on antipsychotic medication. He has directed over 20 clinical investigations, authored more than 200 peer-reviewed journal articles, and co-authored five books on schizophrenia.