Nader Pourhassan

Key Points

• Fraud Conviction: Nader Pourhassan, former CEO of CytoDyn Inc., was convicted in December 2024 of securities fraud, wire fraud, and insider trading for misleading investors about the drug leronlimab, inflating stock prices.

• Financial Impact: CytoDyn raised $300 million from investors, with Pourhassan personally gaining $4.4 million from stock sales, while his actions led to significant investor losses.

• Regulatory Scrutiny: The SEC and DOJ prosecuted Pourhassan for false claims about FDA approvals, damaging CytoDyn’s credibility and halting leronlimab’s development.

• Public Backlash: Investors express anger over financial ruin, though some defend Pourhassan’s passion for leronlimab, creating a polarized sentiment.

Overview

• Identity: Nader Pourhassan, Ph.D., is a former biotech executive who served as president and CEO of CytoDyn Inc., a Vancouver, Washington-based biotechnology company, from 2012 until his termination in January 2022.

• Professional Role: Pourhassan led CytoDyn’s efforts to develop leronlimab, an investigational monoclonal antibody for treating HIV and COVID-19, overseeing clinical trials, FDA submissions, and investor relations.

• Background: With a doctorate in mechanical engineering, Pourhassan transitioned into biotech, initially hired to raise funds for CytoDyn before becoming CEO. His leadership focused on advancing leronlimab through regulatory hurdles.

• Current Status: Convicted on multiple fraud charges, Pourhassan awaits sentencing on June 16, 2025, facing up to 20 years per count.

Allegations and Concerns

• Securities Fraud: Pourhassan was convicted for issuing false press releases, notably in April 2020, claiming CytoDyn submitted a completed Biologics License Application (BLA) for leronlimab to treat HIV, despite knowing it was incomplete and would be rejected by the FDA. This inflated stock prices, enabling personal profits.

• Insider Trading: He sold over 4.8 million CytoDyn shares, netting $4.4 million, while withholding FDA rejection details from investors, violating securities laws.

• Misleading COVID-19 Claims: Pourhassan misrepresented leronlimab’s clinical trial results and FDA approval prospects for COVID-19, despite failed studies and FDA concerns about misleading data, exploiting pandemic hopes.

• Prior Fraud Allegations: Social media reports allege a history of fraud, including insurance scams and arson, though only a theft-by-deception conviction is confirmed, with no prison time served for those claims.

Customer Feedback

• Positive Feedback: Some CytoDyn shareholders defend Pourhassan, citing his dedication to leronlimab. One supporter wrote, “He did tremendous things for the company, and without his efforts, CytoDyn would not have this amazing molecule.” Another stated, “I believe his passion and enthusiasm got the better of him, not malicious intent.”

• Negative Feedback: Many investors express outrage, blaming Pourhassan for financial losses. A Reddit user commented, “He caused financial ruin for many people… fuck this guy.” Another said, “Nader’s actions significantly delayed the development of this drug, harming patients.” Others called him a “dirtbag” for profiting $20 million illegally while paying a $1 million fine earlier.

• Polarized Sentiment: Social media reflects a divide—“long” investors loyal to leronlimab’s science support Pourhassan, while others demand accountability for fraud, with some skeptical of a petition for leniency in sentencing.

Risk Considerations

• Financial Risks: Pourhassan’s actions led to investor losses after CytoDyn’s stock plummeted post-fraud revelations. His personal financial stability may be at risk due to legal penalties and restitution demands.

• Reputational Risks: Convictions and allegations of past fraud have destroyed Pourhassan’s credibility, making future biotech leadership roles unlikely and exposing him to public vilification.

• Legal Risks: Facing up to 20 years per count for nine charges, Pourhassan risks significant prison time. Additional lawsuits from investors or regulatory fines could further complicate his situation.

• Cybersecurity Risks: As a high-profile fraud case, Pourhassan may be targeted by cybercriminals exploiting his notoriety, such as phishing scams or reputational attacks, common in biotech fraud cases per FBI reports.

Business Relations and Associations

• Key Associate: Kazem Kazempour, former CEO of Amarex Clinical Research LLC, was convicted alongside Pourhassan for fraud related to leronlimab’s BLA submission. Kazempour’s firm received $22 million from CytoDyn’s $300 million investor funds.

• Company Ties: CytoDyn Inc., under Pourhassan’s leadership, contracted Amarex for clinical trials and FDA interactions. No major pharmaceutical partnerships were secured due to leronlimab’s regulatory failures.

• Industry Context: Pourhassan’s actions strained CytoDyn’s relations with the FDA, which publicly criticized the company in 2022 for misrepresenting trial data, impacting its industry standing.

Legal and Financial Concerns

• Convictions: On December 9, 2024, Pourhassan was found guilty of four counts of securities fraud, two counts of wire fraud, and three counts of insider trading in the U.S. District Court for Maryland. Sentencing is set for June 16, 2025, with a maximum of 20 years per count.

• SEC Charges: In December 2022, the SEC charged Pourhassan with fraud and insider trading, alleging $4.7 million in profits from $15.8 million in stock sales based on false information.

• DOJ Indictment: Indicted in 2022 with Kazempour for conspiracy, securities fraud, wire fraud, and insider trading, Pourhassan’s scheme misled investors during 2018–2021, raising $300 million.

• Financial Status: No bankruptcy or unpaid debts are reported, but Pourhassan’s $4.4 million in illicit gains may face forfeiture, and investor lawsuits could target his assets.

Risk Assessment Table

Expert Opinion

• Summary: Nader Pourhassan’s tenure at CytoDyn was marked by ambitious efforts to advance leronlimab but marred by fraudulent actions that deceived investors, inflated stock prices, and led to his 2024 conviction. His case highlights the dangers of biotech hype, especially during public health crises, and underscores the need for regulatory transparency.

• Pros: Pourhassan’s passion drove CytoDyn’s pursuit of leronlimab, raising significant funds and advancing a promising drug candidate. His outsider perspective brought energy to a complex field.

• Cons: Convictions for fraud and insider trading, coupled with allegations of past crimes, reveal a pattern of deceptive behavior. His actions delayed leronlimab’s development, harmed investors, and damaged CytoDyn’s prospects.

• Cautionary Advice: Investors should avoid associating with Pourhassan or related ventures, given his legal and reputational baggage. Biotech stakeholders must prioritize due diligence, verify FDA submissions, and demand audited financials. Victims of the fraud should submit impact statements to the DOJ by May 16, 2025, and consider joining class actions.

Key Citations

• DOJ Announcements: United States v. Nader Pourhassan & Kazem Kazempour, December 9, 2024; Two Biotech CEOs Convicted, December 10, 2024.

• SEC Complaint: SEC Charges Former CEO of CytoDyn, December 20, 2022.

• News Reports: Fierce Biotech, “Jury convicts ex-CytoDyn CEO,” December 11, 2024; The Columbian, “Former CytoDyn chief guilty,” December 11, 2024.

• Social Media: Reddit r/CYDY and r/Livimmune discussions, 2022–2025.