A pharmacist has been jailed for 17 years and six months for carrying out a $145 million healthcare fraud.
Texas pharmacist Dehshid “David” Nourian must also pay over $115 million in restitution.
A separate court ruling on March 6 also ordered the forfeiture of $405 million in assets tied to his fraudulent activities—the largest forfeiture ever secured by the Department of Justice’s Health Care Fraud Unit.
Nourian and his co-conspirators owned and operated three pharmacies in Fort Worth and Arlington, Texas.
Court documents revealed they paid doctors millions in illegal kickbacks to prescribe unnecessary compound creams to federal workers.
Key findings
- Prescriptions were filled with creams mixed in pharmacy back rooms by untrained teenagers.
- Production costs were as low as $15 per prescription, but they were billed to the Department of Labor’s Office of Workers’ Compensation Programs (DOL-OWCP) for as much as $16,000 each.
- Some patients reported painful rashes from using the creams.
Between May 2014 and March 2017, Nourian’s pharmacies fraudulently billed the DOL-OWCP and Blue Cross Blue Shield more than $145 million.
They received over $90 million in payments for these unnecessary prescriptions.
Money Laundering and Tax Evasion
To hide the fraud proceeds, Nourian and others funneled money through shell companies and bank accounts.
The scheme included:
- Attempting to evade $24 million in federal income taxes.
- Depositing tens of millions of dollars into personal and family accounts.
- Laundering funds through purported holding companies.
Conviction and Asset Forfeiture
In November 2023, a federal jury in the Northern District of Texas found Nourian guilty on multiple charges, including:
- Conspiracy to commit health care fraud.
- Eight counts of health care fraud.
- Money laundering and conspiracy to launder money.
- Conspiracy to defraud the U.S. government by evading tax collection.
Following his sentencing, the court ordered the forfeiture of $405 million in assets, which includes:
- $395 million in brokerage accounts.
- Over $2 million in bank accounts.
- Real estate in Dallas and Austin worth $8 million.
- A BMW luxury vehicle.
Government Response
Justice Department officials emphasized the importance of cracking down on health care fraud.
Matthew R. Galeotti, head of the Criminal Division, said:
“This 17-year sentence sends a clear message that we will investigate and prosecute even the most sophisticated fraud schemes that target taxpayer money and endanger patients.
This is the highest forfeiture ever obtained in a health care fraud case, and now his ill-gotten proceeds will be returned to taxpayers and programs designed to care for our most vulnerable citizens.”
Other officials from the US Postal Service, Department of Labor, and IRS reinforced their commitment to preventing fraud in federal programs.
A Landmark Case in Health Care Fraud
The Justice Department’s Fraud Section continues to lead efforts against health care fraud through its Health Care Fraud Strike Force Program.
Since 2007, this initiative has charged over 5,800 defendants responsible for more than $30 billion in fraudulent billing.
This case highlights the serious consequences of defrauding federal health care programs. With authorities ramping up investigations and enforcement, those engaging in similar schemes face severe penalties.
