The home of a controversial CEO who previously ran a scandal-hit mental health facility is now being used as a rehab center, angering neighbors.
Sovereign Chief Tonmoy Sharma had previously been director of the Orange County facility, which was once one of the largest rehabilitation companies in the country.
In 2018, following an FBI raid and multiple lawsuits filed against Sovereign, the company officially closed.
Now, his home in San Juan Capistrano is used as a residential treatment center, much to the chagrin of his former neighbors.
Dana Shores Recovery promises “private, expert mental health and addiction recovery” inside the $3,000,000 home.
The San Juan Capistrano house is used as a residential treatment center, much to the chagrin of its former neighbors.
Sovereign Chief Tonmoy Sharma, seen here, had previously been director of the Orange County facility, which was once one of the largest rehabilitation companies in the country.
According to records seen by NBCDana Shores Recovery CEO is listed as Charles Hohman.
When the establishment showed up at the address to speak with the owner, Hohman answered the door and repeatedly told them he had no idea who Sharma was.
Despite his claims, additional records obtained by the outlet indicate that Hohman is paying $10,000 a month in rent to Galahad Asset Management and Trust.
While Sharma is not named in the deal, he manages Galahad Asset Management and Trust.
Stunned neighbors told the outlet how they had been horrified to discover that a facility had opened on their doorstep.
A neighbor told them: ‘It was really something terrifying. It’s something you see on television. “You never think this is going to happen in your neighborhood.”
Another added: “I was stunned. Although he knew who Sharma was, although he knew the history of him, it was his primary residence.
While another said: ‘This has all happened in the last few weeks, with what appears to be a full-fledged business in a residential community. “I think all the neighbors are really worried.”
Dana Shores Recovery Promises ‘Private, Expert Mental Health and Addiction Recovery’ Inside $3,000,000 Home
Records obtained by the outlet indicate Hohman is paying $10,000 a month in rent to Galahad Asset Management and Trust for the home.
Stunned neighbors told the outlet how they had been horrified to discover that a facility had opened on their doorstep.
A further investigation by NBC shows that Hohman is involved in ongoing litigation with the city of Montclair after allegedly running an illegal cannabis dispensary.
The new facility, which is only certified to treat six residents, treats those with “marijuana addiction,” among other drugs.
Laurie Girand formed ‘Advocates for Responsible Treatment’ after a Sovereign center opened in her neighborhood, which began to cause problems.
She told the outlet: ‘There were 19 calls in 9 months in 2016. We had people running away from the house several times.
‘How does the state of California, knowing everything it knows about Tonmoy Sharma and his history with Sovereign Health, allow him to continue profiting from businesses related to addiction treatment or mental health?’
The embattled treatment provider closed its facilities in 2018 amid financial difficulties.
The FBI and state agents raided several company locations in 2017 as part of a fraud investigation.
Sharma lost his medical license in the United Kingdom in 2008 and then moved to California and founded Sovereign Health.
The FBI and state agents raided several company locations in 2017 as part of a fraud investigation, according to the Orange County Register.
According to the outlet, it is still unclear what the outcome of the FBI investigation was, as regulators want information about the raids to remain private.
Brandon, the son of Rose and Allen Nelson, had committed suicide at one of the facilities run by Sharma six years ago.
Mother Rose Nelson told the outlet: “You’re dealing with people’s lives, these are people who are vulnerable and who may not make it.”
The couple said they trusted Sovereign’s promises to offer quality mental health services, adding: “It was marketed that way.” It was all lies.’
Last year, they settled with Sharma and insurance company Sovereign Health for $11 million.
Insurance company Healthnet also recently won a $45 million verdict for fraud and extortion against Sharma and Sovereign, which is on appeal.
In 2019, a client who suffered brain damage after overdosing on painkillers while in a treatment center won $8.88 million from the company.