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Who Is Tonmoy Sharma? Indian-Origin Pharma Magnate Held In US For $149 Million Healthcare Fraud
Originally from Guwahati, Assam, Sharma built a high-profile career in psychiatry and mental health research after earning his MBBS from Dibrugarh University in 1987.
Indian-origin pharma magnate and internationally recognized psychiatrist, Tonmoy Sharma, was arrested at Los Angeles International Airport on May 29 for his alleged role in a massive $149 million healthcare fraud. Sharma, 61, is the founder and former CEO of the now-defunct Sovereign Health Group, a California-based addiction treatment network that once operated multiple facilities across the United States.
Originally from Guwahati, Assam, Sharma built a high-profile career in psychiatry and mental health research after earning his MBBS from Dibrugarh University in 1987. He later moved to the US to establish his medical and entrepreneurial career, gaining recognition for his groundbreaking work in schizophrenia and mental illnesses. He also held medical licenses in both India and the United Kingdom, and contributed to over 200 peer-reviewed journal articles and five books.
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 illegal remunerations for patient referrals. According to the US Attorney's Office for the Central District of California, his company, Sovereign Health, fraudulently billed more than $149 million to private health insurance companies between 2014 and 2020.
The indictment alleges that Sovereign employees, acting under Sharma's direction, used deceptive marketing to lure patients into their facilities. They falsely claimed treatment costs would be covered by a charitable foundation and enrolled patients into insurance plans without their knowledge. The group also billed insurers for unauthorized urinalysis tests, racking up over $29 million in fraudulent claims, and paid over $21 million in illegal kickbacks to secure patient referrals.
The investigation into Sovereign Health began in June 2017, leading to FBI raids on the company's treatment centres, its San Clemente headquarters, and Sharma's residence in San Juan Capistrano. The company ultimately shut down operations in 2018.
Also arrested was Paul Jin Sen Khor, 45, Sovereign's former cash management and accounts payable supervisor. He has pleaded not guilty, and his trial is scheduled for July 29.
Not Just Known For Healthcare Sector
Sharma was not only known for his role in the healthcare sector but also for his deep roots in Assam's cultural and intellectual heritage. He is the son of the late Phani Sharma, a prominent theatre personality, filmmaker, and owner of Guwahati's Anuradha Cinema.
An expert in brain function, cognition, and behavioral science, Sharma served on multiple editorial boards, peer-reviewed for 15 medical journals, and advised on antipsychotic medications. Despite his respected credentials, his alleged involvement in one of the largest healthcare frauds in US addiction treatment history has sent shockwaves through both the medical and South Asian diaspora communities.
