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Crime Owner of medical equipment businesses charged in $30 million health care fraud scheme Raju Sharma, 61, allegedly billed Medicare for equipment patients did not need. The seal of the Justice Department on a lectern in the department’s headquarters briefing room in 2023.
A medical equipment company owner was charged Thursday in a fraud scheme that garnered nearly $30 million through the billing of Medicare for unnecessary durable medical equipment, according to officials.
Raju Sharma, 61, of Sharon, is the owner of Pharmagears and RR Medco and allegedly billed Medicare for equipment patients did not need, including back and knee braces, according to a statement from the U.S. Attorney’s Office in Massachusetts.
The $29.6 million Sharma allegedly received from Medicare, on behalf of patients who did not want to or could not use the equipment issued, was used to buy two Ferraris, a Mercedes-Benz Model S and at least three Rolex watches, according to the statement.
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“As alleged, Mr. Sharma exploited vulnerable Medicare beneficiaries and defrauded the system of millions of dollars meant for legitimate medical care,” United States Attorney Leah Foley said in the statement. “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.”
Between February 2021 and February 2025, Sharma entered into contracts with telemarketing companies that made durable medical equipment orders that targeted Medicare patients, according to Foley’s office.
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The orders were obtained in violation of a federal anti-kickback statute that prohibits giving or receiving incentives for generating healthcare business. Sharma paid the marketing companies on a per-order basis, according to the statement.
Sharma was charged with one count of conspiracy to commit health care fraud and was arrested Thursday morning and later released, according to the statement.