DME Company Owner Pleads Guilty to Participation in $30 Million Medicare Fraud Scheme
The owner of multiple durable medical equipment companies has pleaded guilty to conspiracy to commit healthcare fraud after participating in a $30 million fraud scheme targeting Medicare beneficiaries and generating orders for unnecessary durable medical equipment such as back and knee braces that were billed to Medicare.
Raju Sharma, 61, of Sharon, Massachusetts, is the owner of the durable medical equipment companies Pharmagears, LLC, and RR Medco, LLC. According to the U.S. Department of Justice, between February 2021 and February 2025, Sharma entered into contracts with telemarketing companies that were tasked with contacting Medicare beneficiaries and generating orders for orthotics that were not medically necessary, were often not wanted by the beneficiaries, or could not be used. The orders were generated on the basis of a phone call, without a medical practitioner meeting or examining the beneficiaries, and in some cases, orders were generated by using practitioners’ national provider identifiers without their knowledge or assent.
Sharma was also alleged to have violated the anti-kickback statute, as while the contracts stated a flat fee would be paid to the telemarketing companies, Sharma paid the telemarketing firms on a per-lead, per-order basis. Sharma is alleged to have worked with family members and acquaintances to open further durable medical equipment companies to expand the fraud scheme. The fraudulent durable medical equipment orders totaled approximately $29.6 million and resulted in $15.8 million in payments.
Sharma used the proceeds from the scheme to purchase luxury goods, including three Rolex watches, two Ferraris, and a Mercedes-Benz. Sharma was arrested and charged in February 2025 and was released pending his trial; however, he was detained in April 2025 after contacting a witness, in violation of the conditions of his release. Ahead of the trial, Sharma agreed to a plea deal that saw him plead guilty to one count of conspiracy to commit healthcare fraud, which requires him to forfeit the watches and automobiles and $250,000 in cash that was seized from his bank accounts.
HHS OIG Exclusions List
What You Need To Know
Get The 6 Essentials Checklist For Compliance Officers
A link to your download will be sent to your email address
Your Privacy Respected
HIPAA Journal Privacy Policy
Sharma now faces up to 10 years in jail, 3 years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. Sharma will also be added to the HHS-OIG exclusion list, which prevents him or any companies associated with him from receiving payment from Federal healthcare programs, including Medicare and Medicaid, for any items or services provided.
