Nigerian-American businessman Izunna Okonkwo and five others of various nationalities have been indicted in the United States over an alleged $41 million stock market fraud. According to a statement from the U.S. Department of Justice on Sunday, December 20, the suspects are accused of engaging in insider trading between June 2020 and February 2024.
The six defendants were charged on Friday for participating in a multi-year scheme to trade securities using material non-public information. Besides Okonkwo, the other accused are Muhammad Saad Shoukat, 33, his brothers Muhammad Arham Shoukat, 35, and Muhammad Shahwaiz Shoukat, 36 — all dual US-Pakistani citizens — and their friend Daniyal Khan, 33, a dual UK-Pakistani citizen.
The DOJ statement revealed that a key figure, Kim, worked at an investment bank involved in mergers and acquisitions of publicly traded healthcare and biopharmaceutical companies. Kim allegedly shared confidential deal information with Saad Shoukat, who then traded on the insights and tipped off co-conspirators, including Okonkwo. The scheme reportedly yielded at least $41 million in illicit profits.
The defendants were also implicated in the so-called Olema Manipulation Scheme. From spring 2021, Saad Shoukat, Arham Shoukat, and others invested in Olema, a company developing a breast cancer drug, OP-1250. After accessing confidential data showing the drug’s limited efficacy, they allegedly falsified and disseminated it publicly, making the drug appear more effective than it was. This caused a temporary spike in Olema’s stock price, allowing the conspirators to profit by selling shares.
In addition, the defendants were accused of manipulating the stock price of Opiant, a publicly traded company focused on opioid overdose treatment. Charges against them include stock manipulation, conspiracy, and insider trading, with maximum prison sentences ranging from 20 to 25 years per count if convicted.
The case underscores growing U.S. scrutiny of complex international insider trading schemes and the heavy penalties awaiting those found guilty.
