Texas pharmacist Dehshid “David” Nourian has been sentenced to 17 years and six months in prison for his role in a $145 million fraud scheme against the Department of Labor. The sentencing, which took place on February 21, also includes an order for Nourian to pay over $115 million in restitution. Additionally, on March 6, the court mandated the forfeiture of $405 million in assets linked to his fraudulent activities.
The case revealed that Nourian conspired with others to bribe doctors into prescribing unnecessary compound creams to injured federal workers. These prescriptions were filled at three pharmacies owned by Nourian and his associates in Fort Worth and Arlington, Texas. The compounds, often mixed by untrained teenagers at a low cost, were billed to the Department of Labor’s Office of Workers’ Compensation Programs for exorbitant amounts reaching up to $16,000 per prescription.
Matthew R. Galeotti from the Justice Department's Criminal Division stated: “Protecting victims and safeguarding the public fisc are two of the Criminal Division’s highest priorities.” He added that "this defendant was tried, convicted, and ordered to forfeit more than $400 million – the highest forfeiture ever obtained in a health care fraud case in the Department’s history."
Inspector General Tammy Hull of the U.S. Postal Service emphasized: “This sentence sends a strong message to those who would defraud our federal healthcare programs for personal gain.”
From May 2014 through March 2017, Nourian's pharmacies billed over $145 million and received more than $90 million from DOL-OWCP and Blue Cross Blue Shield for these unnecessary prescriptions. Efforts were made by Nourian and his partners to conceal their profits through money laundering involving shell companies.
In November 2023, a jury found Nourian guilty on multiple counts including conspiracy to commit health care fraud and money laundering. The court's ruling included forfeiting seized assets worth millions tied directly to these crimes.
The investigation was conducted by several agencies including the U.S. Postal Service Office of Inspector General, DOL-OIG, VA-OIG, and IRS-CI. Prosecutors Ethan Womble and Catherine Wagner led the trial efforts with assistance from Dimitri Rocha handling criminal forfeiture aspects.
The Health Care Fraud Strike Force Program underpins efforts against health care fraud nationwide since its inception in March 2007.
More information is available at www.justice.gov/criminal-fraud/health-care-fraud-unit.