30 million dollar fraud

February 23, 2025

BOSTON – The owner of Pharmagears, LLC (Pharmagears) and RR Medco, LLC (RR Medco) has been charged in connection with a nearly $30 million fraud scheme involving medically unnecessary durable medical equipment (DME), including orthotics such as back and knee braces.

According to the Massachusetts Department of Justice, 61-year-old Raju Sharma of Sharon was charged by criminal complaint with one count of conspiracy to commit health care fraud. Sharma was arrested this morning and later released on conditions following an initial appearance in federal court in Boston.

“As alleged, Mr. Sharma exploited vulnerable Medicare beneficiaries and defrauded the system of millions of dollars meant for legitimate medical care. His actions caused millions of dollars of waste on DME products beneficiaries did not need and did not want. He did this to enrich himself – and allow him to purchase luxury cars and high-end watches – all at the expense of the American people,” said United States Attorney Leah B. Foley. “This office will continue to hold accountable those who undermine the integrity of our healthcare system for personal gain. Fraudsters who think they can manipulate the system without consequence should take heed: we will investigate you, we will prosecute you, and we will hold you accountable to ensure that justice is served.”

“Today’s arrest underscores HHS-OIG’s commitment to protecting patients and taxpayers from fraudulent schemes that exploit our health care system and are motivated by pure greed,” stated Special Agent in Charge Roberto Coviello with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to work tirelessly with our law enforcement partners to investigate allegations that individuals and entities are profiting from deceiving and abusing federal health care programs.” “Today’s arrest underscores HHS-OIG’s commitment to protecting patients and taxpayers from fraudulent schemes that exploit our health care system and are motivated by pure greed,” stated Special Agent in Charge Roberto Coviello with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to work tirelessly with our law enforcement partners to investigate allegations that individuals and entities are profiting from deceiving and abusing federal health care programs.”

“Raju Sharma apparently thought he had hit upon a surefire moneymaker when he allegedly conspired with others to fraudulently bill Medicare for almost $30 million worth of durable medical equipment that was unwanted, unnecessary and useless to patients so he could purchase luxury vehicles and expensive watches for himself,” said Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigations, Boston Division. “Health care fraud isn’t some quick and easy way to bulk up your bank account. It’s a costly, consequential federal crime that strains the system and cheats the taxpayers who fund it. Anyone involved in, or entertaining, similar activity should know that the FBI will pursue anyone trying to steal from this country’s vital health care system