This Indian-origin man has been arrested in Rs 1244 crore US healthcare fraud case, read details inside

An Indian-origin pharma businessman, Tanmay Sharma, has been arrested in the United States for his alleged involvement in a massive healthcare fraud case worth Rs 1244 crore (around USD 149 million). He was taken into custody by authorities at Los Angeles International Airport. Sharma is the founder and former CEO of Sovereign Health Group, a now-defunct organisation that once offered addiction recovery and mental health services across Southern California.

According to the U.S. Department of Justice, 61-year-old Sharma is accused of cheating American health insurance companies by submitting fake medical claims worth nearly USD 149 million. Additionally, it is alleged that he paid about USD 21 million (Rs 175 crore) in illegal kickbacks and bribes to recruit patients for his treatment centres. These bribes were used to push people into facilities so his company could bill insurance providers for unnecessary or false treatments.

An eight-count indictment filed by a federal grand jury includes charges of four counts of wire fraud, one count of conspiracy, and three counts related to illegal medical referrals. The U.S. FBI has been investigating this case since 2017, and as part of their probe, they had raided Sovereign Health's centres, company headquarters, and even Sharma’s personal residence in California. The organisation officially shut down its operations in 2018.

Along with Sharma, another man named Paul Jin Sen, who is also accused in the same case, has been arrested. However, Sen has pleaded not guilty in court. His trial is scheduled to begin on 29 July.

Who is Tanmay Sharma?
Tanmay Sharma hails from Guwahati, Assam. He completed his MBBS from Dibrugarh Medical College and did his internship at Delhi’s Safdarjung Hospital. Later, he moved to the United Kingdom and then the United States, where he became involved in the medical and research fields.

Sharma is known internationally for his research on schizophrenia and mental health disorders. He has authored more than 200 research articles and written five books. His father, Phani Sharma, was a well-known actor, theatre artist, and director from Assam.

The case has raised concerns in the healthcare sector, and further legal proceedings are expected in the coming months.