U.S indicts Nigerian, five others over alleged $41m insider-trading scheme

United States prosecutors have indicted Izunna Okonkwo, a dual US–Nigerian citizen, alongside five others over an alleged $41 million insider-trading and stock-manipulation scheme that reportedly ran for almost four years.

In a statement released on Sunday, the US Department of Justice said a federal grand jury returned the indictment on Friday, accusing the defendants of trading securities using material non-public information between June 2020 and February 2024.

Okonkwo was charged with Muhammad Saad Shoukat, Muhammad Arham Shoukat and Muhammad Shahwaiz Shoukat, all dual US–Pakistani citizens, as well as Daniyal Khan, a dual UK–Pakistani citizen.

According to prosecutors, the scheme was built around access to confidential information from within the US investment banking industry. Court documents identified Sung Woo “Will” Kim, an investment banker involved in healthcare and biopharmaceutical mergers and acquisitions, as the initial source of the information.

The Justice Department alleged that Kim obtained advance details of at least nine pending transactions involving publicly listed companies and illegally shared the information with Saad Shoukat. Shoukat allegedly traded on the tips and passed them on to associates, including Okonkwo, who is accused of profiting from the information.

Prosecutors said the group made at least $41 million in illegal profits through the scheme. In addition to insider trading, the defendants are accused of manipulating stock prices to increase gains and limit losses.

One major allegation involves Olema Pharmaceuticals, a company developing a breast cancer drug known as OP-1250.

The indictment claims that some defendants bought large quantities of Olema shares and promoted investor interest before obtaining confidential trial data indicating the drug performed below expectations.

Prosecutors alleged the data was altered and released in a misleading manner to temporarily boost the company’s share price, allowing the defendants to sell at inflated levels.

The group is also accused of similar manipulation involving Opiant Pharmaceuticals, a firm focused on treatments for opioid overdoses.

The defendants face multiple charges, including securities fraud, conspiracy, insider trading and market manipulation.

If convicted, each count carries potential prison sentences of between 20 and 25 years.

The case adds to a series of fraud-related prosecutions involving Nigerian nationals or dual citizens in the United States.