Nader Pourhassan was sentenced to 30 months in prison following a jury conviction on securities fraud, wire fraud and insider trading for misleading investors about his company’s drug prospects. DOJ said the scheme exploited public‑health fears to enrich the defendant and included multi‑million‑dollar restitution and forfeiture.

The U.S. Department of Justice announced on Jan. 26, 2026, that Nader Pourhassan, former CEO of a biotechnology company, received a 30‑month prison term after a jury convicted him of securities fraud, wire fraud and insider trading. According to DOJ, Pourhassan made materially false and misleading statements to investors about the efficacy and regulatory prospects of an investigational drug, then sold his personal holdings at inflated prices as investor demand rose on false pretenses. Prosecutors said the scheme preyed on heightened public‑health concerns to artificially boost the company’s stock, enriching the defendant while leaving investors with substantial losses when the truth surfaced. The sentence also included an order for multi‑million‑dollar restitution to victims and forfeiture of illicit proceeds. DOJ highlighted that the case demonstrates enforcement priorities around corporate fraud that undermines market integrity and investor confidence, particularly in sectors tied to health and life‑sciences. Sentencing documents emphasize the broader harms of deception in capital markets and reiterate the department’s commitment to pursuing executives who manipulate markets for personal gain.