Nigerian, four Pakistanis charged in US for ‘$41m insider trading, market manipulation’
The United States Federal Bureau of Investigation (FBI) has charged six individuals, including a Nigerian national, for allegedly engaging in large-scale insider trading and market manipulation.
The suspects have been identified as Izunna Okonkwo from Nigeria, and four Pakistanis Muhammad Saad Shoukat, Muhammad Arham Shoukat, Muhammad Shahwaiz Shoukat, and Daniyal Khan. Gyunho Justin Kim was charged separately in a related case.
According to a statement on the US Department of Justice website, the individuals participated in a “years-long scheme to trade securities based on material non-public information (MNPI)” from June 2020 through February 2024.
The FBI said Kim, who worked at an investment bank involved in multiple mergers and acquisitions of publicly traded healthcare and biopharmaceutical companies, allegedly obtained confidential information on several pending deals. He is accused of sharing this information with Muhammad Saad Shoukat, who then traded on the information and passed it on to others, including his brothers and Okonkwo.
The FBI reported that the co-conspirators collectively made at least $41 million in illicit profits.
The indictment further alleges that Saad Shoukat and his brothers manipulated the stock of Olema, a company developing a breast cancer treatment drug called OP-1250. After buying significant shares, the suspects accessed confidential data indicating the drug was less effective than expected. They then allegedly falsified and publicly released the data, inflating the stock price and profiting from subsequent sales.
The group is also accused of manipulating shares of Opiant, a company developing an opioid overdose treatment. After receiving confidential acquisition information from Kim, the Shoukat brothers and others bought Opiant stock. When the acquisition stalled, they reportedly created a fake Opiant website and email accounts to release a false press statement about a merger, driving the stock up by roughly 29% and profiting from the spike, while causing losses to other investors.
If convicted, the suspects face penalties of over 20 years in prison.
