Urine Tests, Kickbacks, and a $149 Million Healthcare Scam

Posted on June 8, 2025 | Urine the News

When Tonmoy Sharma landed at LAX last week, he wasn’t greeted by family or a driver—he was greeted by federal agents. The Indian-origin psychiatrist and former CEO of Sovereign Health was promptly arrested for allegedly masterminding a jaw-dropping $149 million healthcare fraud scheme.

And yes—urine played a starring role.

According to a federal indictment unsealed just days ago, Sharma’s California-based chain of mental health and addiction treatment centers billed insurance companies for over $29 million worth of unnecessary urinalysis tests. That’s right, pee. Routine drug screenings conducted at labs owned by Sovereign Health were allegedly exploited to inflate claims and pocket huge sums.

But the shady business didn’t stop at urine. Prosecutors also allege Sharma funneled $21 million in illegal kickbacks to so-called “body brokers”—people paid to recruit vulnerable patients for Sovereign’s programs under the false promise of free treatment through a fictitious foundation.

“This is not just about financial fraud, it's about abusing the trust of those who came seeking help,” said the U.S. Attorney’s Office, describing the scam as a “classic example of exploitation” in the addiction treatment world.

Sharma, whose medical license was previously revoked in the UK, had rebuilt his career in the U.S. by founding Sovereign Health. But his empire began to crumble when the FBI raided its offices in 2017. Sovereign officially closed in 2018, though Sharma allegedly continued operating another facility under the name Dana Shores Recovery.

Now charged with eight federal counts—including wire fraud and conspiracy—Sharma has pleaded not guilty. If convicted, he could face decades behind bars. Also charged is Sovereign’s former accounts supervisor Paul Jin Sen Khor, who has likewise pleaded not guilty.

It’s a surreal twist in the saga of America’s addiction treatment industry—and a sobering reminder that even something as mundane as a urine test can be weaponized for profit.

For more on the story, see the full article from The Telegraph India.