A dual US-Nigerian citizen, Izunna Okonkwo, has been indicted alongside five other individuals of various nationalities in connection with an alleged $41 million stock market fraud scheme in the United States. The indictment, announced by the U.S. Department of Justice, details a sophisticated insider trading and stock manipulation operation that spanned several years and involved multiple publicly traded companies in the healthcare and biopharmaceutical sectors.
According to federal prosecutors, Okonkwo and his co-defendants are accused of participating in a conspiracy to trade securities based on material non-public information, commonly known as insider trading. The other individuals named in the indictment include 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. The sixth defendant, identified as Kim, is alleged to have been the source of the confidential information at the heart of the scheme.
Investigators allege that Kim, who worked at an investment bank deeply involved in mergers and acquisitions within the healthcare and biopharmaceutical industries, obtained sensitive, non-public information about at least nine pending deals. This information was either acquired through direct involvement in the transactions or from colleagues with access to the details. Kim is accused of illegally sharing this information with Saad Shoukat, who then traded on it himself and passed it along to others, including his brothers, Khan, and Okonkwo.
Prosecutors say that the group collectively reaped illicit profits totaling at least $41 million by executing trades based on the confidential information before it became public. The indictment describes a well-coordinated network in which each member played a specific role, from sourcing the information to executing trades and recruiting additional participants.
Beyond insider trading, the defendants are also accused of engaging in what authorities have termed the "Olema Manipulation Scheme." This aspect of the case centers on Olema Pharmaceuticals, a publicly traded company focused on developing breast cancer treatments, particularly a drug known as OP-1250. Beginning in the spring of 2021, Saad Shoukat and Arham Shoukat allegedly began investing heavily in Olema stock and encouraged others to do the same.
After acquiring substantial holdings, the group allegedly accessed confidential data indicating that OP-1250 was less effective than anticipated. Rather than acting on this negative information, the defendants are accused of falsifying the data and disseminating it publicly in a manner designed to appear authentic and as if it originated from Olema itself. The release of this misleading information temporarily inflated the perceived efficacy of the drug, causing Olema’s stock price to rise. During this window, the conspirators allegedly sold large volumes of shares, profiting from the artificially elevated prices and avoiding potential losses.
The indictment further alleges that the group employed similar tactics to manipulate the stock price of Opiant Pharmaceuticals, another publicly traded company specializing in opioid overdose treatments. The coordinated efforts to manipulate stock prices and trade on insider information, prosecutors say, represent a flagrant violation of U.S. securities laws and market integrity.
Each defendant faces multiple charges, including conspiracy, insider trading, and securities fraud. If convicted, they could face maximum prison sentences ranging from 20 to 25 years for each count. The case underscores the U.S. government’s commitment to aggressively pursuing individuals and networks that seek to undermine the fairness and transparency of the financial markets.
This is not the first time a Nigerian national has faced fraud-related charges in the United States. In a separate case, Oluwaseun Adekoya, another Nigerian citizen, was ordered deported after serving a 20-year prison sentence for his role in a $2 million fraud scheme. Adekoya was convicted of conspiracy to commit bank fraud, conspiracy to commit money laundering, and multiple counts of aggravated identity theft following a lengthy trial.
The indictment of Okonkwo and his co-defendants serves as a stark reminder of the global reach of financial crime and the vigilance of U.S. authorities in detecting and prosecuting such offenses. The case is expected to proceed through the federal court system, where the accused will have the opportunity to respond to the charges and present their defense.
