‘He did this to enrich himself': Mass. businessman charged in $30 million medicare fraud scheme
A Sharon man, the owner of Pharmagears, LLC (Pharmagears) and RR Medco, LLC (RR Medco), is charged in connection to a $30 million fraud scheme.
Raju Sharma, 61, has been charged under a criminal complaint with one count of conspiracy to commit healthcare fraud, leading to his arrest Thursday morning.
'As alleged, Mr. Sharma exploited vulnerable Medicare beneficiaries and defrauded the system of millions of dollars meant for legitimate medical care. His actions caused millions of dollars of waste on DME products beneficiaries did not need and did not want. He did this to enrich himself – and allow him to purchase luxury cars and high-end watches – all at the expense of the American people,' said United States Attorney Leah B. Foley.
According to charging documents, between February 2021 and February 2025, Sharma used his companies to enter contracts with telemarketing companies that generated durable medical equipment (DME) orders by targeting Medicare beneficiaries.
Sharma would then bill Medicare for the medically unnecessary DME, which Medicare beneficiaries didn't want or couldn't use, or a medical practitioner ordered without meeting the patient or were ordered by the fraudulent use of practitioners' national provider identifiers without their knowledge.
The DME orders were also obtained in violation of the Anti-Kickback Statute, despite Sharma saying he would pay marketing companies a flat fee for their services and instead paid them on a per-lead/per-order basis.
Allegedly, it is also believed that Sharma worked with multiple people, including his family, to open and run other DME companies similarly to his.
It is believed that Sharma billed Medicare around $29.6 million and received $15.8 million.
The money was used for personal luxuries, such as 2 Ferraris, a Mercedes-Benz Model S, and at least 3 Rolex watches.
'Raju Sharma apparently thought he had hit upon a surefire moneymaker when he allegedly conspired with others to fraudulently bill Medicare for almost $30 million worth of durable medical equipment that was unwanted, unnecessary and useless to patients so he could purchase luxury vehicles and expensive watches for himself,' said Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigations, Boston Division. 'Health care fraud isn't some quick and easy way to bulk up your bank account. It's a costly, consequential federal crime that strains the system and cheats the taxpayers who fund it. Anyone involved in, or entertaining, similar activity should know that the FBI will pursue anyone trying to steal from this country's vital health care system.'
The charge of conspiracy to commit health care fraud can provide a prison sentence of up to 10 years with at least 3 years of supervised release, and at least a $250,000 (or twice the gross pecuniary gain or loss).
This is a developing story. Check back for updates as more information becomes available.
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