The defendants were accused of trading securities based on material non-public information (MNPI) and manipulating the stock prices of two biopharmaceutical companies developing treatments for breast cancer and opioid overdoses.
U.S. authorities have charged six individuals, including a 33-year-old Nigerian-American, Izunna Okonkwo, for their alleged roles in a years-long insider trading and market manipulation scheme that generated at least $41 million in illicit profits, federal prosecutors announced.
The defendants were accused of trading securities based on material non-public information (MNPI) and manipulating the stock prices of two biopharmaceutical companies developing treatments for breast cancer and opioid overdoses.
According to a statement released by the U.S. Attorney's Office, District of New Jersey, Senior Counsel Philip Lamparello said the charges stem from what prosecutors described as an elaborate and far-reaching financial fraud operation.
“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.”
Also commenting on the case, FBI Newark Special Agent in Charge Stefanie Roddy said the agency was committed to holding those responsible accountable.
“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.”
Those charged in a complaint unsealed on Wednesday, December 17, 2025, include Muhammad Saad Shoukat, 33; his brothers Muhammad Arham Shoukat, 35, and Muhammad Shahwaiz Shoukat, 36, all dual U.S.-Pakistani citizens; their associate Daniyal Khan, 33, a dual U.K.-Pakistani citizen; and Izunna Okonkwo, 33, a dual U.S.-Nigerian citizen.
In a related case, Gyunho Justin Kim, 32, of San Francisco, California, was charged in a separate complaint and made an initial appearance before U.S. Magistrate Judge Michael A. Hammer on December 12, 2025.
According to court documents and statements made in court, the charges arise from three overlapping schemes carried out between June 2020 and February 2024: a multi-million-dollar insider trading scheme, a scheme to manipulate the stock price of Olema Pharmaceuticals, a company developing a breast cancer drug, and a scheme to manipulate the stock of Opiant Pharmaceuticals, which was developing an opioid overdose treatment.
Prosecutors alleged that Kim, who worked at an investment bank involved in mergers and acquisitions of publicly traded healthcare and biopharmaceutical companies, obtained MNPI about pending deals.
Kim allegedly shared that information with Saad Shoukat, who then traded on it directly and through others.
Saad Shoukat is accused of tipping off his brothers, Khan, and Okonkwo, who also traded on the confidential information.
Authorities said the group earned at least $41 million in illegal profits from insider trading tied to at least nine corporate transactions.
In the Olema manipulation scheme, prosecutors said Saad Shoukat, Arham Shoukat, and others invested heavily in Olema stock while the company was developing OP-1250, a breast cancer treatment.
After allegedly obtaining confidential data showing the drug was less effective than expected, the defendants are accused of falsifying the data and releasing it publicly to make it appear as though it came from Olema.
The release of the falsified data temporarily boosted Olema’s stock price, allowing the defendants to sell shares at inflated prices and avoid losses, prosecutors said.
In the Opiant scheme, Kim allegedly provided MNPI to Saad Shoukat about a potential acquisition of Opiant.
When the deal stalled and the stock failed to rise, prosecutors said the defendants created a fake Opiant website and fraudulent email addresses and issued a fake press release announcing a merger.
The false announcement caused Opiant’s stock price to surge by about 29 percent, enabling the defendants to sell their shares at a profit, while investors suffered significant losses, according to the complaint.
If convicted, the defendants face substantial prison terms. Charges include conspiracy to commit securities fraud, insider trading, securities fraud, wire fraud, and multiple counts of conspiracy to commit market manipulation, with maximum sentences ranging from five to 25 years’ imprisonment per count.
Senior Counsel Lamparello credited special agents of the FBI, under the direction of Special Agent in Charge Roddy, with leading the investigation.
The case is being prosecuted by Assistant U.S. 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, for the three Shoukat brothers; Scott McBride of Roseland, New Jersey, and Alexey Tarasov of Rosenberg, Texas, for Okonkwo; and Timothy Crudo of San Francisco, California, for Kim. Defence counsel for Khan was not listed.