A dual US-Nigerian citizen, Izunna Okonkwo, has been indicted alongside five others of different nationalities over an alleged $41m stock market fraud in the United States.
A statement on the United States Department of Justice website noted that the suspects were accused of engaging in insider trading between June 2020 and February 2024.
According to the statement, the six defendants were charged on Friday for their alleged roles in a years-long scheme involving the trading of securities based on material non-public information.
The other defendants were identified as Muhammad Saad Shoukat, 33; his brothers, Muhammad Arham Shoukat, 35, and Muhammad Shahwaiz Shoukat, 36, all dual US-Pakistani citizens, and Daniyal Khan, 33, a dual UK-Pakistani citizen.
Explaining the scheme, the statement said, “Kim worked at an investment bank that was actively involved in multiple mergers and acquisitions of publicly traded healthcare and biopharmaceutical companies.
“Kim obtained material non-public information about many of these pending deals, either by working on the deals directly or from others who did.
“Kim illegally shared the information about at least nine of these deals with Saad Shoukat, who traded on that information by himself and through others.
“Saad Shoukat also tipped off others—including Arham Shoukat, Shahwaiz Shoukat, Khan, and Okonkwo—who similarly traded and profited from the material non-public information. Overall, Saad Shoukat and his co-conspirators received illicit profits from the insider trading scheme totalling at least $41m.”
The statement further alleged that some of the defendants were involved in what it described as the Olema Manipulation Scheme, noting, “From the spring of 2021, Saad Shoukat and Arham Shoukat began investing in Olema stock and encouraged others to invest in it.
“After purchasing substantial stock in Olema, Saad Shoukat, Arham Shoukat, and others accessed confidential information showing that OP-1250 was less effective than they had hoped.
“They then falsified the OP-1250 data that the co-conspirators had illegally accessed and publicly disseminated it in a manner that made it appear authentic and as though it originated from Olema.
“The release of the false data—which inflated the drug’s perceived efficacy—temporarily caused Olema’s stock price to rise, during which Saad Shoukat, Arham Shoukat, and others profited and avoided losses by selling large volumes of Olema shares.”
The defendants were also accused of manipulating the stock of Opiant, another publicly traded firm, and now face charges bordering on insider trading, conspiracy and stock manipulation, with potential jail terms of between 20 and 25 years on each count if convicted.