A dual United States–Nigerian citizen, Izunna Okonkwo, has been indicted alongside five other individuals of different nationalities over an alleged $41 million stock market fraud in the United States.
The indictment was disclosed in a statement published on the United States Department of Justice (DOJ) website and obtained by Punch on Sunday. According to the statement, the defendants allegedly engaged in insider trading between June 2020 and February 2024.
The DOJ said the suspects were formally charged on Friday for participating in a long-running 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.
According to prosecutors, the insider trading scheme revolved around a former investment banker identified as Kim, who worked on mergers and acquisitions involving healthcare and biopharmaceutical companies.
“Kim obtained material non-public information about many of these pending deals and illegally shared the information with Saad Shoukat, who traded on it and tipped off others, including Okonkwo,” the statement said.
The DOJ alleged that the defendants earned at least $41 million in illicit profits from the scheme.
The indictment also detailed an alleged stock manipulation scheme involving Olema Pharmaceuticals, where false data was disseminated to inflate stock prices and avoid losses.
Additionally, prosecutors accused the defendants of manipulating the stock of Opiant Pharmaceuticals, a company focused on opioid overdose treatment.
The defendants were charged with multiple offences, including conspiracy, securities fraud, and insider trading, with each count carrying a potential 20 to 25 years prison sentence if convicted.
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