Six individuals, including a Nigerian national, have been charged by the United States Federal Bureau of Investigation (FBI) over alleged involvement in “insider trading and market manipulation on a massive scale”.
Those charged were named as Izunna Okonkwo, a Nigerian, alongside four Pakistanis — Muhammad Saad Shoukat, Muhammad Arham Shoukat, Muhammad Shahwaiz Shoukat, and Daniyal Khan.
Gyunho Justin Kim was named in a separate criminal complaint.
In a statement released on the US Department of Justice website, the FBI said the defendants were involved in “a years-long scheme to trade securities based on material non-public information (MNPI)”.
According to the FBI, the charges arose from “three overlapping securities fraud schemes that occurred at various points from June 2020 through February 2024”.
The agency explained that Kim was employed at an investment bank engaged in several mergers and acquisitions involving publicly traded healthcare and biopharmaceutical firms, and allegedly had access to MNPI concerning multiple pending transactions.
Kim reportedly shared the confidential information unlawfully with Muhammad Saad Shoukat, who traded using the details and passed them on to others.
“Saad Shoukat also tipped off others — including Arham Shoukat, Shahwaiz Shoukat, Khan, and Okonkwo — who similarly traded and profited from the MNPI,” the FBI said.
“Overall, Saad Shoukat and his co-conspirators received illicit profits from the insider trading scheme totalling at least $41 million.
“Saad Shoukat, Arham Shoukat, and others actively manipulated the stock price of Olema, a publicly traded company. Olema focused on developing breast cancer treatment through a drug called OP-1250.
“From the spring of 2021, Saad Shoukat and Arham Shoukat began investing in Olema stock and encouraged others to invest in it.
“After acquiring large volumes of Olema shares, Saad Shoukat, Arham Shoukat, and others obtained confidential information indicating that OP-1250 was less effective than anticipated.
“Saad Shoukat, Arham Shoukat, and others then altered the OP-1250 data they had illegally accessed and released it publicly in a way that falsely appeared authentic and attributable to Olema.
“The dissemination of the falsified data — which exaggerated the drug’s effectiveness — briefly pushed Olema’s share price higher, allowing Saad Shoukat, Arham Shoukat, and others to profit and avoid losses by selling significant amounts of Olema stock.
“Saad Shoukat, his brothers, and others also manipulated the stock price of Opiant, another publicly listed company developing a treatment for opioid overdose.
“Kim supplied MNPI to Saad Shoukat regarding a company attempting to acquire Opiant. Acting on that information, Saad Shoukat and others purchased Opiant shares. However, the proposed acquisition later stalled, leaving them holding the stock.
“In or around April 2022, Saad Shoukat, his brothers, and others allegedly responded by using a fake Opiant website and fraudulent email addresses designed to appear legitimate to circulate a false press release announcing a supposed merger involving Opiant and another firm.
“The fake press release caused Opiant’s share price to surge by about 29%. Saad Shoukat, his brothers, and others then sold off shares during the spike, profiting from the move and inflicting significant losses on unsuspecting investors.”
If convicted, the defendants face potential prison sentences of more than 20 years.