Insider trading indictment: court documents for Izunna Okonkwo

Izunna Okonkwo and five others indicted in $41m U.S. stock fraud probe

A Nigerian–American, Izunna Okonkwo, is among six people indicted in the United States over an alleged $41 million insider-trading and stock-manipulation scheme.

Federal prosecutors say the scheme ran from June 2020 through February 2024. A Department of Justice statement dated December 20 says the defendants traded securities using material non-public information gathered during that period.

Authorities say the group was charged after a years-long investigation into trades tied to confidential merger and acquisition activity at several healthcare and biopharmaceutical companies.

The indictment names Muhammad Saad Shoukat, 33, and his brothers Muhammad Arham Shoukat, 35, and Muhammad Shahwaiz Shoukat, 36 all dual U.S Pakistani citizens, and Daniyal Khan, 33, a dual U.K.-Pakistani citizen, as co-defendants alongside Okonkwo.

According to the filing, an individual referred to as “Kim,” who worked at an investment bank involved in multiple deals, obtained material non-public information.

Prosecutors allege Kim shared details of at least nine pending deals with Saad Shoukat, who then traded on the tips and passed information to others.

The statement says Saad Shoukat and his associates including Arham, Shahwaiz, Khan and Okonkwo traded on that inside information and reaped illicit profits estimated at $41 million.

Separately, prosecutors allege a coordinated effort to manipulate shares of Olema Pharmaceuticals. The indictment claims some defendants bought large positions in Olema, then released falsified data purporting to show strong results for OP-1250, a breast-cancer drug candidate, temporarily inflating the company’s share price.

The filing also accuses the group of manipulating stock of Opiant, a company developing opioid overdose treatments. Charges include stock manipulation, conspiracy and insider trading.

If convicted, the defendants face severe penalties. Each count carries potential maximum sentences in the range of 20 to 25 years behind bars, according to the indictment.