Assam-Born Doctor Arrested in US for ＄140 Million Insurance Fraud

Dr. Tonmoy Sharma, a doctor from Guwahati, Assam, has been arrested at Los Angeles International Airport for committing a $149 million insurance fraud in the US.

He was taken into custody for allegedly performing fake treatments, sharing patient data without consent, submitting false insurance claims, and manipulating patient records.

And this isn’t the first time, he has a long history of shady practices.

What did he do?

Sharma used to run a company called Sovereign Health Group, which was under investigation back in 2017. It was a major network of addiction treatment centers across Southern California. The company faced multiple raids in 2018 at its treatment centers, headquarters, and even Sharma’s home. It was shut down the same year.

But that didn’t stop him. Authorities later found out he was secretly running a treatment facility called Dana Shores Recovery under a different name and license. All of this happened while Sovereign Health was still facing serious legal trouble.

Before moving to the US, Sharma was already in the spotlight in the UK for pharmaceutical trials. But his license was revoked there after questions were raised about the credibility of his work.

What’s Happening Legally?

The 64-year-old doctor was arrested on May 29, 2025, at Los Angeles airport while allegedly trying to flee to Dubai.

According to authorities, Sharma submitted over $149 million worth of fraudulent insurance claims and received $21 million in illegal kickbacks linked to patient admissions—something that’s strictly banned in the US.

He’s now facing trial on multiple charges:

• 4 counts of wire fraud (up to 20 years for each)

• 1 count of conspiracy (up to 5 years)

• 3 counts of receiving illegal payments (up to 10 years for each)

Not the first time—His story began in the UK

Dr. Sharma’s troubles didn’t begin in the US. Back in the 1990s, he had made a name for himself in the UK by conducting clinical trials for big pharmaceutical companies.

But things started falling apart in 2001, when Catherine Baxter, a medical adviser at Sanofi, raised concerns about financial irregularities in a drug study comparing Sanofi’s product with a rival’s. This prompted Sanofi to hire private investigators to look into Sharma’s research practices. In response, he filed a defamation suit, which he later withdrew, citing financial hardship.

By 2007, UK authorities had investigated multiple ethical violations. Reports revealed that Sharma:

• Recruited vulnerable patients without caregiver consent

• Approved studies over phone calls

• Paid people to participate in his trials

• Falsely claimed academic titles like a doctorate and professorship

Some participants who tried to back out of his studies alleged they were threatened. Eventually, the UK government revoked his license. To escape further legal fallout, Sharma moved to the US.

Why was he arrested in the US?

Sharma had set up an elaborate scam to exploit the US healthcare system through Sovereign Health. His scheme revolved around fake insurance claims and aggressive patient recruitment.

His company’s call centers would assure patients that their treatment was covered by a charitable foundation—a false promise. The goal was to collect personal details like Social Security numbers and birth dates, which were then used to enroll patients in private insurance plans, often without their knowledge or consent. Private insurers were targeted because they offered much higher payouts than government-backed Medicaid.

To make these applications look legitimate, staff:

• Falsified live events

• Posed as patients during verification calls

• Manipulated income details so patients could qualify for subsidized insurance

That wasn’t all. Patients were subjected to costly medical and drug tests, most of them unnecessary. These were billed through Sovereign Health’s in-house lab, Vedanta Laboratories, helping the company pocket large sums. Authorities also found that services were charged in the name of doctors who had already left the company.

To ensure a steady stream of patients, Sharma paid illegal kickbacks to brokers, disguised as “marketing fees.” These brokers were paid to refer patients, which led to over $21 million in illegal payouts. Fake contracts were used to hide the true nature of this setup.

The end of a long-running fraud

From shady trials in the UK to insurance scams in the US, Sharma’s arrest marks the end of a decades-long web of deception that spanned continents and systems.

(Input from various sources)

(Rehash/Pooja Bansal/MSM)