Guwahati-Born Pharma Tycoon Arrested in $149 Million Fraud Case in US

Tonmoy Sharma, a 61-year-old Indian-origin psychiatrist and former CEO of Sovereign Health Group, has been arrested in the United States on charges of orchestrating a massive $149 million healthcare fraud scheme. Sharma, originally from Guwahati, Assam, was taken into custody at Los Angeles International Airport on May 29 following an eight-count federal grand jury indictment.

The US Attorney’s Office for the Central District of California announced that Sharma is accused of submitting fraudulent insurance claims worth over $149 million. Sovereign Health Group, which once operated a network of addiction treatment centers across Southern California, is alleged to have enrolled patients in insurance plans without their consent and billed insurers for unauthorized and unnecessary medical tests—particularly urinalysis procedures—resulting in more than $29 million in false claims.

Additionally, authorities allege that Sharma paid over $21 million in illegal kickbacks to acquire patient referrals, violating federal anti-kickback statutes. The US Department of Justice also charged him with four counts of wire fraud, one count of conspiracy, and three counts of illegal remunerations related to referrals for clinical services.

Sharma’s co-defendant in the case, Paul Jin Sen Khor, was also arrested and has pleaded not guilty. His trial is scheduled to begin on July 29.
The investigation into Sovereign Health Group began in 2017, with the FBI conducting raids at the organization’s San Clemente headquarters, several treatment facilities, and Sharma’s home in San Juan Capistrano. The company ceased operations in 2018.

Before the fraud allegations, Sharma was widely known in the psychiatric community for his pioneering work in schizophrenia research. A graduate of Dibrugarh Medical College and former intern at Delhi's Safdarjung Hospital, Sharma later obtained a medical license in the UK and built a respected career in neuropsychiatry. He authored over 200 peer-reviewed articles, co-wrote five books, and served on editorial and advisory boards of leading medical journals.

Sharma hails from a culturally prominent family in Assam. He is the eldest son of the late Phani Sharma, a well-known sports organizer and former owner of Anuradha, Rupayan, and Anupama cinema halls in Guwahati. Notably, he is also the brother-in-law of Congress leader Bobeeta Sharma.