The owner of Pharmagears, LLC and RR Medco, LLC has been charged with orchestrating a fraud scheme involving nearly $30 million in medically unnecessary durable medical equipment (DME), including orthotics such as back and knee braces. Raju Sharma, 61, from Sharon, faces one count of conspiracy to commit health care fraud. He was arrested and later released under conditions after an initial court appearance in Boston.
United States Attorney Leah B. Foley stated that "Mr. Sharma exploited vulnerable Medicare beneficiaries and defrauded the system of millions of dollars meant for legitimate medical care." She emphasized the commitment to holding accountable those who undermine the healthcare system for personal gain.
Special Agent in Charge Roberto Coviello from the U.S. Department of Health and Human Services Office of Inspector General highlighted their dedication to protecting patients and taxpayers from fraudulent schemes motivated by greed. "We will continue to work tirelessly with our law enforcement partners," he added.
Jodi Cohen, Special Agent in Charge at the FBI's Boston Division, noted that health care fraud is not a quick way to make money but a serious federal crime that burdens the system and taxpayers. "Anyone involved in similar activity should know that the FBI will pursue anyone trying to steal from this country’s vital health care system," she warned.
The charging documents allege that between February 2021 and February 2025, Sharma used contracts with telemarketing companies to generate DME orders targeting Medicare beneficiaries. These orders were often unwanted or unnecessary, ordered without proper medical examination or through fraudulent use of practitioners’ identifiers without consent. The Anti-Kickback Statute was allegedly violated by paying marketing companies on a per-order basis instead of a flat fee.
Sharma is accused of collaborating with co-conspirators to open additional DME companies operating similarly fraudulent schemes. His companies reportedly billed Medicare about $29.6 million for these orders and received approximately $15.8 million in payments. Profits were allegedly used to purchase luxury items like Ferraris, a Mercedes-Benz Model S, and Rolex watches; seizure warrants have been issued for these goods.
If convicted, Sharma could face up to 10 years in prison, supervised release for up to three years, and significant fines based on sentencing guidelines and statutes governing criminal cases.
U.S. Attorney Foley announced these developments alongside HHS-OIG SAC Coviello and FBI SAC Cohen. The case receives support from the United States Marshals Service and Sharon Police Department, while Assistant U.S. Attorneys Lauren Graber and Sarah Hoefle are prosecuting it.
These allegations remain unproven until guilt is established beyond reasonable doubt in court proceedings.