Raju Sharma, 61, the owner of two medical supply companies, has been charged in connection with a nearly $30 million fraud scheme involving durable medical equipment (DME), as announced by the U.S. Attorney’s Office for the District of Massachusetts on Thursday.
Sharma, who runs Pharmagears LLC and RR Medco LLC, allegedly entered into contracts with telemarketing firms between February 2021 and February 2025 to generate orders for medical equipment targeted at Medicare beneficiaries. These beneficiaries were often sold unnecessary DME, which they did not want, could not use, or was ordered without proper medical evaluation, according to the U.S. Attorney’s office.
In total, Sharma’s companies billed Medicare approximately $29.6 million, ultimately receiving around $15.8 million in payments. Sharma and his co-conspirators, including family members and associates, are accused of using similar fraudulent practices across multiple businesses.
Authorities reported that Sharma used the ill-gotten profits from the scheme to purchase luxury goods, including two Ferraris, a Mercedes-Benz Model S, and at least three Rolex watches.
U.S. Attorney Leah B. Foley commented on the case, stating, “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.”