Reported by: Ijeoma G | Edited by: Gabriel Osa
Washington, D.C. — Federal authorities in the United States have indicted six individuals, including a dual Nigerian-American national, Izunna Okonkwo, in what prosecutors describe as a years-long insider trading and stock market manipulation scheme that generated at least $41 million in illicit profits, the U.S. Department of Justice and the Federal Bureau of Investigation (FBI) announced this week.
According to court filings unsealed in the District of New Jersey, the defendants are accused of unlawfully using material non-public information (MNPI) to trade securities and manipulate share prices of publicly traded companies, particularly in the healthcare and biopharmaceutical sectors, to enrich themselves at the expense of ordinary investors.
Prosecutors allege that the scheme unfolded between June 2020 and February 2024, involving confidential information about pending mergers, acquisitions and clinical trial results for companies developing treatments for breast cancer and opioid overdoses. This information, which had not been made public, was passed among the co-conspirators and used to execute trades before the market could adjust, resulting in substantial unlawful gains.
The central figure accused of obtaining the insider information is Sung Woo “Will” Kim, a former investment banker involved in mergers and acquisitions. Prosecutors say he acquired confidential data on at least nine deals and passed the information to co-defendant Muhammad Saad Shoukat, who then shared tips with others, including Okonkwo and several associates identified as brothers Muhammad Arham Shoukat and Muhammad Shahwaiz Shoukat, as well as Daniyal Khan.
Federal filings describe how the group allegedly engaged not only in traditional insider trading but also in market manipulation, leveraging their advance knowledge to influence stock prices through coordinated trading and the dissemination of misleading information. One specific allegation centres on Olema Pharmaceuticals, where the defendants are said to have purchased large volumes of stock before accessing confidential data indicating disappointing clinical results for a cancer drug. They then purportedly falsified and released altered trial data to inflate the stock price artificially, profiting from the temporary rise before offloading shares. A similar pattern was reported for Opiant Pharmaceuticals, a company focused on treatments for opioid overdoses.
The six men have been charged with multiple federal offences, including securities fraud, conspiracy, insider trading and market manipulation. If convicted, each faces potential maximum prison sentences ranging from 20 to 25 years on certain counts, reflecting the severity of the allegations and the breadth of the scheme.
The indictment underscores the U.S. government’s aggressive posture in pursuing complex financial crimes that undermine the integrity of capital markets. Prosecutors have emphasised that schemes exploiting material non-public information erode investor confidence and harm the fairness and transparency essential to well-functioning markets.
Among the accused, Izunna Okonkwo, 33, a dual U.S.–Nigerian citizen, has drawn significant attention due to his profile as a tech entrepreneur and co-founder of Pastel, a fintech startup celebrated in business communities. Court filings indicate Okonkwo allegedly used brokerage accounts and encrypted communications to execute trades based on confidential tips from Shoukat, profiting substantially from at least one major deal tied to a pharmaceutical acquisition, according to media reporting.
The Shoukat brothers — Muhammad Saad, Muhammad Arham and Muhammad Shahwaiz — are identified as dual U.S.–Pakistani citizens, while Daniyal Khan holds dual U.K.–Pakistani citizenship. Gyunho Justin Kim, the alleged source of the insider information, has been charged in a separate complaint and appeared before a U.S. federal magistrate judge earlier this month.
The case highlights the transnational nature of modern financial crime, where individuals operating across borders can exploit sophisticated networks and encrypted technology to conceal illicit activity. It also reinforces cooperation between U.S. law enforcement and international partners to track complex schemes that involve foreign nationals or dual citizens.
Officials from the U.S. Attorney’s Office and the FBI have reiterated that tackling insider trading and market manipulation remains a priority, particularly in areas where advancing technology and globalised finance create vulnerabilities. Federal prosecutors emphasise that robust enforcement is critical to protecting investors and maintaining confidence in U.S. securities markets.
The indictment adds to a growing series of high-profile financial crime prosecutions in recent years, reflecting intensified scrutiny by regulators and prosecutors of schemes that exploit confidential information and deceptive practices for profit. Key measures include leveraging forensic accounting, cross-agency cooperation and advanced surveillance to uncover and disrupt fraud.
The legal process will now proceed through pre-trial and potentially trial phases, during which evidence will be presented and challenged in U.S. federal court. Meanwhile, law enforcement agencies continue to pursue any outstanding leads and coordinate with foreign counterparts where appropriate. Given the complex, multi-jurisdictional nature of the case, further developments, including extraditions or additional charges, cannot be ruled out.
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