United States federal authorities have charged six individuals, including a 33 year old Nigerian American, Izunna Okonkwo, over their alleged involvement in a sophisticated insider trading and stock manipulation scheme that prosecutors say generated at least 41 million dollars in illicit profits over several years.
The charges were announced by the United States Attorney’s Office for the District of New Jersey, following the unsealing of a criminal complaint on Wednesday, December 17, 2025. The defendants are accused of exploiting material non public information and orchestrating deceptive market manipulation tactics to profit from the stocks of biopharmaceutical companies developing treatments for breast cancer and opioid overdoses.
Those named in the complaint include Muhammad Saad Shoukat, 33, his brothers Muhammad Arham Shoukat, 35, and Muhammad Shahwaiz Shoukat, 36, all dual United States and Pakistani citizens. Also charged are their associate, Daniyal Khan, 33, a dual United Kingdom and Pakistani citizen, and Izunna Okonkwo, 33, a dual United States and Nigerian citizen.
In a related but separate complaint, Gyunho Justin Kim, 32, of San Francisco, California, was also charged and made his initial appearance before United States Magistrate Judge Michael A. Hammer on December 12, 2025.
According to prosecutors, the charges arise from three overlapping schemes allegedly carried out between June 2020 and February 2024. These include a multi million dollar insider trading operation linked to confidential merger and acquisition information, a scheme to manipulate the stock price of Olema Pharmaceuticals, a company developing a breast cancer drug, and a separate scheme to manipulate the stock of Opiant Pharmaceuticals, which was working on an opioid overdose treatment.
Senior Counsel Philip Lamparello of the U.S. Attorney’s Office described the case as a far reaching and elaborate financial fraud operation designed to undermine the integrity of the securities market.
“As alleged, the defendants engaged in insider trading and market manipulation on a massive scale, using stolen information, falsified data, and fake press releases to mislead investors and enrich themselves,” Lamparello said. “This Office will continue to pursue complex financial fraud schemes that threaten the fairness and transparency of our markets and harm individual investors.”
Court documents allege that Kim, who worked at an investment bank involved in mergers and acquisitions of publicly traded healthcare and biopharmaceutical companies, had access to highly sensitive material non public information concerning pending corporate transactions. Prosecutors said Kim illegally shared this information with Saad Shoukat, who then traded on it directly and also passed it on to others.
Saad Shoukat is accused of tipping off his brothers, Khan, and Okonkwo, all of whom allegedly traded securities based on the confidential information. Authorities said the group used brokerage accounts in their own names and in the names of associates to conceal the scope of the activity.
Prosecutors estimate that the defendants earned at least 41 million dollars in illegal profits from insider trading tied to no fewer than nine corporate transactions. These profits, they said, were generated by buying or selling securities ahead of major public announcements, including mergers and acquisitions, thereby exploiting information not available to ordinary investors.
Beyond insider trading, the complaint outlines two separate market manipulation schemes that prosecutors say were designed to artificially inflate stock prices and allow the defendants to exit their positions at a profit.
In the Olema Pharmaceuticals scheme, prosecutors allege that Saad Shoukat, Arham Shoukat, and others accumulated large positions in Olema stock while the company was developing OP 1250, a drug intended for the treatment of breast cancer. According to the complaint, the defendants later obtained confidential data suggesting that the drug was less effective than previously believed.
Rather than disclose the negative information, prosecutors allege that the defendants falsified the data and released it publicly in a way that made it appear as though it originated from Olema itself. The manipulated release temporarily boosted Olema’s stock price, allowing the defendants to sell their shares at inflated values and avoid substantial losses.
In the second manipulation scheme involving Opiant Pharmaceuticals, Kim is accused of providing Saad Shoukat with material non public information regarding a potential acquisition of the company. When the anticipated deal stalled and the stock failed to rise as expected, prosecutors said the defendants resorted to more overt deception.
According to court filings, the group allegedly created a fake Opiant website, fraudulent email addresses, and a counterfeit press release announcing a merger that did not exist. The false announcement reportedly caused Opiant’s stock price to surge by approximately 29 percent in a short period.
Prosecutors said the defendants quickly sold their shares during the spike, generating significant profits, while unsuspecting investors who relied on the false information suffered heavy financial losses when the truth emerged and the stock price fell.
Commenting on the case, FBI Newark Special Agent in Charge Stefanie Roddy said the bureau remains committed to aggressively pursuing financial crimes that undermine market confidence.
“The FBI takes allegations of insider trading with the utmost seriousness,” Roddy said. “Shoukat and his co conspirators benefitted greatly from their years long scheme and cheated the system to reap their rewards. As complex as a financial fraud scheme is, the FBI will endeavor to stay one step ahead of these alleged criminals.”
If convicted, the defendants face significant prison sentences. The charges include conspiracy to commit securities fraud, insider trading, securities fraud, wire fraud, and multiple counts of conspiracy to commit market manipulation. The maximum penalties range from five to 25 years’ imprisonment per count, depending on the specific offence.
The investigation was led by special agents of the Federal Bureau of Investigation under the direction of Special Agent in Charge Roddy. The case is being prosecuted by Assistant United States Attorneys George Barchini of the Bank Integrity, Money Laundering, and Recovery Unit and Aaron Webman, Deputy Chief of the Economic Crimes Unit in Newark.
Defence counsel listed in court records include Chris Christie of Morristown, New Jersey, representing the three Shoukat brothers; Scott McBride of Roseland, New Jersey, and Alexey Tarasov of Rosenberg, Texas, representing Izunna Okonkwo; and Timothy Crudo of San Francisco, California, representing Kim. Defence counsel for Daniyal Khan was not listed at the time of filing.
The case has drawn significant attention due to its scale, the alleged sophistication of the schemes, and the involvement of young professionals operating across multiple jurisdictions. Prosecutors say the matter highlights ongoing risks posed by insider trading and market manipulation, particularly in sectors such as healthcare and biotechnology, where confidential information can have an outsized impact on stock prices.
As the case proceeds through the federal court system, authorities say they will continue to pursue accountability for financial crimes that threaten investor confidence and the integrity of U.S. capital markets.
