| BIOTECH CEO SENTENCED IN SECURITIES FRAUD SCHEME Greenbelt, Maryland – An Oregon man is headed to federal prison for insider trading in connection with COVID-19 and HIV drugs. U.S. District Judge Paula Xinis sentenced Nader Pourhassan, 62, of Lake Oswego, Oregon, to 30 months for misleading investors about his company's development of a new drug and then selling his personal stock in the company at artificially inflated prices. Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Assistant Attorney General A. Tysen Duva, Justice Department – Criminal Division; Special Agent in Charge Jimmy Paul, FBI – Baltimore Field Office; and Special Agent in Charge Robert Iwanicki, Food and Drug Administration – Office of Criminal Investigations (FDA-OCI), Los Angeles Field Office. According to court documents and evidence presented at trial, Pourhassan served as the Chief Executive Officer of CytoDyn, a publicly traded company based in Vancouver, Washington. The company was developing an investigational drug to treat HIV and COVID-19. Between 2018 and 2021, Pourhassan intentionally misled investors about the drug's prospects for FDA approval to artificially inflate the price of CytoDyn's stock and attract new investors. He then sold his 4.8 million shares of CytoDyn stock after making false announcements to investors and pocketed $4.4 million. "Pourhassan exploited a deadly public health crisis to intentionally deceive investors and the public out of millions – all so that he could enrich himself," Hayes said. "As today's sentence makes clear, executives who mislead investors and manipulate the truth for personal gain will be held accountable. Our office will continue to aggressively pursue those who put greed ahead of honesty and the rule of law." "The defendant lied to investors about a drug to treat HIV and COVID-19 so he could engage in insider trading," Duva said. "This type of fraud exploits vulnerable Americans, undermines the integrity of our financial markets, and erodes the trust that investors place in public companies. The Criminal Division remains committed to prosecuting corporate executives who deceive investors." "Nader Pourhassan lied and schemed to selfishly line his own pockets. He betrayed the trust placed in him as a corporate executive by deceiving and misleading investors," Paul said. "Not only are his actions illegal, but they also serve to undermine public confidence in our financial institutions. This sentencing shows the FBI's commitment to rooting out fraudsters seeking to manipulate the market." "Today's announcement should serve as a reminder that fraud related to medical products will not be tolerated," Iwanicki said. "The FDA will continue to work with our law enforcement partners to bring to justice those who place profits above public health." In December 2024, a federal jury convicted Pourhassan of four counts of securities fraud, two counts of wire fraud and three counts of insider trading. Judge Xinis also ordered Pourhassan to pay more than $5.3 million in restitution and to forfeit more than $4.4 million. U.S. Attorney Hayes commended the FBI, FDA-OCI and the U.S. Postal Inspection Service for their work in this investigation. Ms. Hayes also thanked Assistant U.S. Attorney Adeyemi Adenrele; Acting Deputy Chief Vasanth Sridharan, Acting Assistant Chief Matthew Reilly; and Senior Counsel Lauren Archer, Criminal Division – Fraud Section, who prosecuted this federal case, along with Law Clerk Kerstin Abolnik and Paralegal Specialists Selam Wehabe and John Lee, Fraud Section, who provided substantial assistance. For more information about the Maryland U.S. Attorney's Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud. # # # | 
No comments:
Post a Comment