Texas pharmacist Dehshid “David” Nourian has been sentenced to 17 years and six months in prison for his role in a massive fraud scheme that cheated the U.S. government out of millions of dollars. Nourian, who owned multiple pharmacies in Texas, was involved in a scam where false claims were made to a federal health care program. In addition to his prison sentence, he has been ordered to pay over $115 million in restitution and forfeit a staggering $405 million in assets, the largest forfeiture ever in a health care fraud case.
The fraud involved prescription compound creams, which are special medications mixed to fit a patient’s needs. These creams were prescribed to injured federal workers, but in reality, many were unnecessary and ineffective. Some patients even reported that the creams caused painful skin rashes. The scam ran between 2014 and 2017, during which Nourian’s pharmacies billed the government for more than $145 million and received over $90 million in payments.
Illegal Bribes and Money Laundering Exposed
To make the fraud work, Nourian and his team paid doctors illegal bribes and kickbacks to prescribe these costly creams. These payments encouraged doctors to refer prescriptions to his pharmacies, even when the creams were not needed. The scam was so large that the cost to make each prescription was only around $15, but they were billed to the government for as much as $16,000 each.
Shockingly, Nourian hired untrained teenagers to mix these expensive medications in the back rooms of his pharmacies. Instead of providing real treatment, the goal was to make as much money as possible. This scheme not only wasted taxpayer money but also put patients at risk.
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To hide the money he made from the fraud, Nourian and his associates used fake companies and multiple bank accounts. Investigators found that he also tried to avoid paying $24 million in federal income taxes. He laundered millions of dollars through different bank accounts and even funneled money to family members’ investment accounts.
Court Orders Historic $405 Million Forfeiture
In November 2023, a federal jury found Nourian guilty on multiple charges, including conspiracy to commit health care fraud, money laundering, and tax evasion. Following his sentencing in February 2024, the court ruled that he must forfeit $405 million in assets linked to his crimes.
Authorities seized and returned these funds to the taxpayers. The forfeited assets included $395 million in brokerage accounts, over $2 million in bank accounts, $8 million worth of real estate in Texas, and a luxury BMW. This case marks the highest forfeiture amount ever obtained in a health care fraud prosecution by the Department of Justice.
Officials from several government agencies worked together to uncover the scheme. These agencies, including the U.S. Postal Service, the Department of Labor, the Department of Veterans Affairs, and the IRS, spent years investigating the case and gathering evidence.
This case highlights the government’s commitment to protecting taxpayer money and ensuring that those who commit fraud face serious consequences. Nourian’s long prison sentence and massive financial penalty send a strong message that health care fraud will not be tolerated.
