Raju Sharma, 61, of Sharon, Massachusetts, has been charged with one count of conspiracy to commit health care fraud 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 charging documents, between February 2021 and February 2025, Sharma, on behalf of Pharmagears, LLC (Pharmagears) and RR Medco, LLC (RR Medco), entered into contracts with telemarketing companies that generated DME orders by targeting Medicare beneficiaries. Sharma then allegedly billed Medicare for this medically unnecessary DME, which Medicare beneficiaries often did not want or could not use and/or a medical practitioner ordered without having met or examined the beneficiary or were ordered by the fraudulent use of practitioners’ national provider identifiers without their knowledge or assent.
It is alleged that these DME orders were also obtained in violation of the Anti-Kickback Statute, because although Sharma agreed in the contracts to pay the marketing companies a flat fee for their services, Sharma in fact paid the marketing companies on a per-lead, or per-order, basis.
The charging documents also allege that Sharma worked with multiple other co-conspirators, including family and acquaintances, to open and operate additional DME companies in the same fraudulent manner. In total, the companies owned, operated, or connected with Sharma allegedly billed Medicare approximately $29.6 million for these fraudulent DME orders and were paid approximately $15.8 million.
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.
Defendant: Raju Sharma, Owner of Pharmagears, LLC and RR Medco, LLC
Criminal Charge: Conspiracy to Commit Health Care Fraud
City and State: Boston, Massachusetts
Arrest Date: February 2025
Outcome: Released on conditions pending further proceedings
Dollar Amounts: Approximately $29.6 million billed to Medicare, Approximately $15.8 million paid to companies owned by Sharma
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Key Facts
- State: Massachusetts
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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