An Oregon man has been sentenced to federal prison for insider trading related to the development of drugs for COVID-19 and HIV. Nader Pourhassan, 62, from Lake Oswego, Oregon, received a 30-month sentence after misleading investors about his company’s progress on a new drug and selling his personal shares at inflated prices.
The sentencing was announced by Kelly O. Hayes, U.S. Attorney for the District of Maryland, along with officials from the Justice Department’s Criminal Division, the FBI’s Baltimore Field Office, and the Food and Drug Administration’s Office of Criminal Investigations.
Court documents show that Pourhassan was CEO of CytoDyn, a publicly traded company based in Vancouver, Washington. Between 2018 and 2021, he made false statements about the likelihood of FDA approval for an investigational drug intended to treat HIV and COVID-19. These actions increased CytoDyn’s stock price and attracted new investors. After making these announcements, Pourhassan sold 4.8 million shares of his own stock in the company, earning $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.”
Assistant Attorney General A. Tysen Duva stated: “The defendant lied to investors about a drug to treat HIV and COVID-19 so he could engage in insider trading. 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.”
FBI Special Agent in Charge Jimmy Paul commented: “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. 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.”
FDA Special Agent in Charge Robert Iwanicki added: “Today’s announcement should serve as a reminder that fraud related to medical products will not be tolerated. 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, Pourhassan was convicted by a federal jury on four counts of securities fraud, two counts of wire fraud, and three counts of insider trading. Judge Paula Xinis ordered him to pay over $5.3 million in restitution as well as forfeiture exceeding $4.4 million.
The investigation involved cooperation among several agencies including the FBI, FDA-OCI, and U.S Postal Inspection Service.
For more information about reporting fraud or learning about priorities from Maryland's U.S Attorney's Office visit www.justice.gov/usao-md or https://www.justice.gov/usao-md/report-fraud.
