U.S. Charges Six Over $41 Million Insider Trading, Including Nigerian-American

U.S. authorities have charged six individuals, including 33-year-old Nigerian-American Izunna Okonkwo, for allegedly orchestrating a multi-million-dollar insider trading and market manipulation scheme. Prosecutors say the operation netted at least $41 million in illicit profits over several years.

The accused reportedly traded securities using material non-public information (MNPI) and manipulated the stock prices of two biopharmaceutical firms developing treatments for breast cancer and opioid overdoses. Court documents indicate the scheme involved false data, fake press releases, and strategic trades designed to mislead investors.

According to federal prosecutors, the alleged plot spanned from June 2020 to February 2024, involving three overlapping operations. One focused on Olema Pharmaceuticals’ breast cancer drug, OP-1250, where confidential data on the drug’s efficacy was allegedly falsified to manipulate stock prices.

Another scheme targeted Opiant Pharmaceuticals, developers of an opioid overdose treatment. Prosecutors say the defendants created a fake company website and email accounts, issuing a fraudulent merger announcement that inflated stock prices by roughly 29 percent.

The alleged insider trading network included Muhammad Saad Shoukat and his brothers, Muhammad Arham Shoukat and Muhammad Shahwaiz Shoukat, along with associate Daniyal Khan. Gyunho Justin Kim of San Francisco was charged separately for providing critical MNPI from his position at an investment bank.

Authorities say the group traded on confidential information tied to at least nine corporate transactions, reaping millions in unlawful gains while deceiving investors. Prosecutors warned that such schemes threaten market integrity and investor confidence.

The defendants face charges including conspiracy to commit securities fraud, insider trading, wire fraud, and market manipulation. Convictions could result in prison terms ranging from five to 25 years per count.

Federal investigators credited the FBI and prosecuting attorneys for uncovering the complex network. Defence lawyers have been appointed for most defendants, though one remains without listed counsel.