Nigerian, 5 Others Indicted In US Over Alleged $41m Stock Market Fraud

A dual United States–Nigerian citizen, Izunna Okonkwo, has been indicted alongside five other individuals of different nationalities over allegations bordering on $41 million stock market fraud in the United States.

A statement obtained from the website of the United States Department of Justice on Sunday said Okonkwo and the other defendants allegedly engaged in insider trading between June 2020 and February 2024.

According to the statement, the six suspects 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 their friend, Daniyal Khan, 33, a dual UK-Pakistani citizen.

Explaining the alleged insider trading scheme, the Department of Justice said an individual identified as Kim worked at an investment bank 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,” the statement said.
The information was allegedly shared with Saad Shoukat, who traded on it personally and through others. Saad Shoukat was also accused of tipping off Arham Shoukat, Shahwaiz Shoukat, Khan, and Okonkwo, who allegedly traded and profited from the information.

“Overall, Saad Shoukat and his co-conspirators received illicit profits from the insider trading scheme totalling at least $41 million,” the statement added.

The defendants were also accused of participating in what authorities described as the Olema Manipulation Scheme.

Prosecutors alleged that Saad Shoukat, Arham Shoukat, and others manipulated the stock price of Olema, a publicly traded company developing a breast cancer treatment drug known as OP-1250.

According to the statement, the group invested heavily in Olema stock from spring 2021 and later accessed confidential data indicating the drug was less effective than expected. They allegedly falsified the data and publicly disseminated it in a way that made it appear authentic and as though it originated from Olema.

The release of the false data reportedly inflated Olema’s stock price temporarily, allowing the defendants to profit and avoid losses by selling large volumes of shares.

They were also accused of manipulating the stock price of Opiant, another publicly traded company involved in opioid overdose treatment development.

The Department of Justice said the defendants face multiple charges, including conspiracy, insider trading, and stock manipulation, with maximum prison sentences ranging from 20 to 25 years on each count if convicted.

Okonkwo is not the first Nigerian to face fraud-related charges in the United States. On December 4, US authorities ordered the deportation of a Nigerian, Oluwaseun Adekoya, after completing a 20-year prison sentence for his role in a $2 million fraud scheme.

The Department said Adekoya was convicted of conspiracy to commit bank fraud, conspiracy to commit money laundering, and nine counts of aggravated identity theft following a three-week trial.