India-West Staff ReporterTUSTIN, CA – The glitzy facade of Sovereign Health Group, once a prominent name in addiction treatment across Southern California and beyond, crumbled today with the dramatic arrest of its founder and former CEO, Tonmoy Sharma. According to the US Attorney’s Office, Central District of California, Sharma orchestrated a sprawling, multi-million dollar fraud, transforming a mission of healing into a ruthless pursuit of illicit profits.Sharma, 61, of Tustin, wa...
India-West Staff Reporter
TUSTIN, CA – The glitzy facade of Sovereign Health Group, once a prominent name in addiction treatment across Southern California and beyond, crumbled today with the dramatic arrest of its founder and former CEO, Tonmoy Sharma. According to the US Attorney’s Office, Central District of California, Sharma orchestrated a sprawling, multi-million dollar fraud, transforming a mission of healing into a ruthless pursuit of illicit profits.
Sharma, 61, of Tustin, was apprehended on May 29 at Los Angeles International Airport, a seemingly routine return interrupted by the weight of an eight-count federal grand jury indictment. He faces charges that paint a picture of a sophisticated scheme: four counts of wire fraud, one count of conspiracy, and three counts of illegal remunerations for patient referrals.
At the heart of the government’s case is the accusation that Sharma directed a breathtaking fraud, allegedly submitting over $149 million in bogus claims to health insurers between 2014 and 2020. A significant chunk of this staggering figure, more than $29 million, reportedly stemmed from fraudulent urinalysis claims.
The indictment details how Sharma allegedly pushed for frequent and unnecessary comprehensive panel testing, sometimes up to three times a week, even when physicians hadn’t authorized the tests or were no longer affiliated with Sovereign. The costly, in-depth panel tests, returning results days later, were billed at significantly higher rates than the quick cup tests that offered immediate results.
But the alleged deception extended far beyond lab tests. The indictment claims Sharma masterminded a system to aggressively acquire patients, often through misrepresentations. A key tactic involved a “sham organization” masquerading as a foundation funded by former patients.
This supposed foundation was, in reality, a ruse for Sovereign employees, allegedly under Sharma’s direct command, to illicitly obtain patients’ personal information – names, dates of birth, and Social Security numbers. This data, prosecutors contend, was then used to surreptitiously enroll patients into private health insurance plans. Employees allegedly fabricated “qualifying life events” to bypass enrollment periods and manipulated income figures to secure Affordable Care Act government-subsidized plans, shunning lower-reimbursing Medicaid. Patients, often unaware of these maneuvers, were even impersonated by Sovereign staff during calls to insurance companies.
The alleged web of deceit didn’t end there. Sharma and his co-defendant, Paul Jin Sen Khor, 45, of Irvine, Sovereign’s cash management and accounts payable supervisor, are accused of fueling patient intake through a substantial kickback scheme. More than $21 million in illegal payments were allegedly funneled to patient brokers, masked by “sham contracts” disguised as payments for “marketing hours.” Khor, who was arrested separately and arraigned this afternoon in Santa Ana, pleaded not guilty and was released on $20,000 bond, with a trial set for July 29. He faces one count of conspiracy and one count of illegal remunerations for referrals.
For Tonmoy Sharma, if convicted, the charges carry a grim potential future, with each wire fraud count alone carrying a statutory maximum sentence of 20 years in federal prison. Both defendants face up to five years for conspiracy and up to 10 years for each illegal remunerations count.