Indian-Origin Pharma Tycoon Tonmoy Sharma Arrested in U.S. Over $149M Healthcare Fraud
LOS ANGELES — Indian-origin psychiatrist and former addiction treatment executive Tonmoy Sharma has been arrested in the United States for allegedly orchestrating a $149 million healthcare fraud scheme, primarily targeting insurance companies.
Sharma, 61, was arrested at Los Angeles International Airport on May 29, following an eight-count federal indictment. He is the founder and former CEO of the now-defunct Sovereign Health Group, a Southern California-based network of addiction treatment centers.
According to the U.S. Attorney’s Office for the Central District of California, Sharma and his associates fraudulently enrolled patients into health insurance plans without their knowledge and billed for unauthorized urinalysis tests, generating more than $29 million in fake claims.
In addition to the billing scheme, Sharma is accused of paying over $21 million in illegal kickbacks to acquire patient referrals — a violation of federal healthcare laws.
Charges and Co-Defendant
Sharma faces:
- 4 counts of wire fraud
- 1 count of conspiracy
- 3 counts of illegal remunerations for patient referrals
A co-defendant in the case, Paul Jin Sen Khor, was also arrested and has pleaded not guilty. His trial is scheduled to begin July 29, 2025.
The FBI has been investigating Sharma since 2017, conducting raids on Sovereign Health’s facilities, headquarters in San Clemente, and Sharma’s residence in San Juan Capistrano. The company officially shut down in 2018.
Background: Who is Tonmoy Sharma?
Born in Guwahati, Assam, Tonmoy Sharma earned his MBBS from Dibrugarh Medical College in 1987 and completed his internship at Safdarjung Hospital in New Delhi. He later obtained a medical license from the General Medical Council (UK) in 1988 and built a career as a research psychiatrist in the U.S., focusing on mental health and cognitive disorders.
He was also a published author on topics related to dual diagnosis and substance-use disorders, and is the son of the late Phani Sharma, a well-known sports promoter and cultural figure in Assam.
As of now, Sharma remains in federal custody, and the charges against him have yet to be proven in court.