Tonmoy Sharma, a Guwahati-born pharmaceutical entrepreneur and former CEO of Sovereign Health Group, was arrested on May 29 at Los Angeles International Airport in connection with a massive $149 million healthcare fraud case in the United States. Sharma, aged 61, is originally from Guwahati and an alumnus of Dibrugarh Medical College. He now faces multiple federal charges, reflecting one of the largest healthcare fraud cases in recent times.

The U.S. Attorney’s Office for the Central District of California revealed that Sharma has been indicted on eight counts. These include four counts of wire fraud, one count of conspiracy, and three counts related to illegal remuneration for patient referrals. The arrest followed a lengthy federal investigation into Sovereign Health Group, an addiction treatment network based in Southern California that is now defunct.

According to the prosecutors, Sharma and his co-defendants engaged in fraudulent practices by enrolling patients into health insurance plans without their knowledge or consent. They submitted fake insurance claims to the providers and paid over $21 million in illegal kickbacks to secure patient referrals. The Department of Justice stated that the fraud involved more than $149 million in false claims submitted to various insurance providers. Sharma’s co-accused, Paul Jin Sen Khor, was also arrested and has pleaded not guilty. The trial for the case is scheduled to begin on July 29.

Sharma’s background includes medical training at Dibrugarh University, followed by an internship at Delhi’s Safdarjung Hospital after graduating in 1987. Later, he moved abroad and became a well-known figure in psychiatric research and addiction treatment. He played a significant role in advancing addiction treatment programs in the U.S. He is also the son of the late Phani Sharma, a prominent sports organizer from Guwahati and former owner of iconic cinemas such as Anuradha, Rupayan, and Anupama.

The FBI had been investigating Sharma since 2017, conducting several raids on his addiction treatment facilities, his corporate headquarters in San Clemente, California, and his residence in San Juan Capistrano. The investigation uncovered a systematic scheme to defraud insurance companies through fraudulent billing and illegal patient referral payments.

Apart from his entrepreneurial activities, Tonmoy Sharma is recognized for his contributions to mental health through authoring multiple books on psychiatric care and dual-diagnosis treatment programs, which address co-occurring mental health and substance abuse disorders. His arrest has caused significant shock and concern, especially among the Assamese diaspora and the global medical community, due to his stature in the field.

This case highlights the increasing scrutiny by U.S. authorities on healthcare fraud and the consequences of unethical business practices in the healthcare sector. It also underscores the importance of regulatory oversight in protecting patients and insurance systems from exploitation. As the trial approaches, Sharma’s case is expected to attract widespread attention, shedding light on the complexities of healthcare fraud involving addiction treatment centers and the broader implications for healthcare providers and policymakers.