Nader Pourhassan, a biotech chief executive, was sentenced to 30 months in prison for a securities-fraud scheme that misled investors about drug-development progress and allowed him to sell stock at inflated prices. He was ordered to pay more than $5.3 million in restitution and forfeit over $4.4 million, with the case investigated by the FBI and FDA criminal investigators.

Federal prosecutors announced that Nader Pourhassan received a 30-month prison sentence for orchestrating a securities fraud scheme tied to misleading statements about his company’s pharmaceutical development. According to the Department of Justice, Pourhassan disseminated false and misleading information to inflate share prices while privately cashing out at those artificially elevated valuations, exploiting public-health anxieties to generate investor interest and market momentum. The sentence accompanies orders to pay more than $5.3 million in restitution to harmed investors and to forfeit over $4.4 million in illicit proceeds. Investigators from the FBI and the Food and Drug Administration’s criminal division participated in the probe, which focused on material misrepresentations regarding clinical results, regulatory interactions, and development timelines. Prosecutors characterized the conduct as undermining market integrity and investor trust in the biotech sector, noting the broader investor-protection rationale for sentencing and financial penalties. The case highlights enforcement priorities at the intersection of public-health communications and securities fraud, and officials indicated ongoing efforts to identify co-conspirators or related misconduct.