The home of a controversial CEO who previously ran a scandal-hit mental institution is now being used as a drug rehabilitation clinic, angering neighbors.
Sovereign boss Tonmoy Sharma was previously the head of the Orange County branch, once one of the largest rehabilitation companies in the country.
In 2018, the company was officially closed after an FBI raid and multiple lawsuits against Sovereign.
Now his house in San Juan Capistrano is used as a residential care center, much to the chagrin of his former neighbors.
Dana Shores Recovery promises “expert and private addiction and mental health recovery” in the $3,000,000 home.
The house in San Juan Capistrano is used as a residential care center, much to the chagrin of its former neighbors
Sovereign boss Tonmoy Sharma, seen here, was previously the head of the Orange County branch, once one of the largest rehabilitation companies in the country
According to data seen by NBCDana Shores Recovery CEO is listed as Charles Hohman.
When the outlet showed up at the address to speak to the owner, Hohman answered the door and repeatedly told them he had no idea who Sharma is.
Despite his claims, further records obtained by the outlet show that Hohman pays $10,000 per month in rent to Galahad Asset Management and Trust.
Although there is no mention of Sharma in the agreement, Galahad Asset Management and Trust is managed by him.
Stunned neighbors told the outlet how they were shocked to discover a facility had opened on their doorstep.
A neighbor told them: ‘It was really terrifying. It’s something you see on TV. You never think this is going to happen in your neighborhood.”
Another added: ‘I was stunned. Even though I knew who Sharma was, even though I knew his history, 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 concerned.”
Dana Shores Recovery promises ‘expert and private recovery from addiction and mental health’ in $3,000,000 home
Records obtained by the outlet show that Hohman pays $10,000 per month in rent to Galahad Asset Management and Trust for the home
Stunned neighbors told the outlet how they were shocked to discover a facility had opened on their doorstep
Further investigation by NBC reveals that Hohman is involved in an ongoing lawsuit with the city of Montclair after allegedly running an illegal cannabis dispensary.
The new facility, which is only certified to treat six residents, treats, among other things, people with a “marijuana addiction.”
Laurie Girand founded Lawyers for Responsible Treatment after a sovereign facility opened in her neighborhood and started causing problems.
She told the outlet, “There were 19 calls in 9 months in 2016. People had run away from home several times.
“How is it that the state of California, which knows everything about Tonmoy Sharma and his history with Sovereign Health, allows him to continue to profit from companies related to addiction treatment or mental health care?”
The controversial practitioner closed his facilities in 2018 due to financial problems
The FBI and state agents raided multiple company locations in 2017 as part of a fraud investigation
Sharma lost his medical license in Britain in 2008 and then moved to California and founded Sovereign Health.
The FBI and state agents raided multiple company locations in 2017 as part of a fraud investigation. the Orange County Register.
It remains unclear what the outcome of the FBI investigation was, with regulators wanting information about the raids to remain private, the outlet said.
Rose and Allen Nelson’s son, Brandon, had committed suicide in one of Sharma’s facilities six years ago.
Mother Rose Nelson told the outlet, “You’re dealing with people’s lives, these are vulnerable people who may not make it.”
The couple said they had confidence in Sovereign’s promises of quality mental health care, adding: ‘It was marketed that way. It was all lies.”
Last year, they settled with Sharma and Sovereign Health’s insurance company for $11 million.
Insurance company Healthnet also recently won a $45 million fraud and racketeering verdict 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.