FBI Accuses Forbes-Celebrated Nigerian Tech Boss, Izunna Okonkwo, Of $41 Million Bank Fraud, Money Laundering – TheNigeriaLawyer
US prosecutors have indicted a dual US-Nigerian citizen, Izunna Okonkwo, and five other defendants over an alleged $41 million insider-trading and stock-manipulation scheme that federal authorities say unfolded over nearly four years.
According to a statement published by the US Department of Justice (DoJ) on Sunday, a federal grand jury charged the defendants on Friday with trading securities using material non-public information between June 2020 and February 2024.
Okonkwo was charged alongside Muhammad Saad Shoukat (33) and his brothers, Muhammad Arham Shoukat (35) and Muhammad Shahwaiz Shoukat (36) — all dual US-Pakistani citizens — as well as Daniyal Khan (33), a dual UK-Pakistani citizen.
Prosecutors said the alleged scheme hinged on access to confidential deal information from within the US investment banking sector. Court filings identify Sung Woo “Will” Kim, an investment banker involved in mergers and acquisitions in the healthcare and biopharmaceutical industries, as the original source of the information.
Kim allegedly obtained advance details of at least nine pending transactions involving publicly traded companies, either through his direct work on the deals or through internal communications. Prosecutors said he unlawfully shared the information with Saad Shoukat, who then traded on it personally and through associates.
Shoukat allegedly passed the tips to others — including Okonkwo — who also traded on the information and profited. The DoJ said the group generated at least $41 million in illicit gains from the insider-trading activity.
Beyond insider trading, prosecutors accused some of the defendants of manipulating the share prices of selected companies to maximise profits and avoid losses. One of the most significant allegations centres on Olema Pharmaceuticals, a publicly listed firm developing a breast cancer drug known as OP-1250.
According to the indictment, Saad Shoukat, Arham Shoukat and others bought large volumes of Olema shares and encouraged wider investment. After gaining access to confidential trial data indicating the drug performed worse than publicly believed, the defendants allegedly altered and falsified the data.
Prosecutors said they then released the fabricated information in a way designed to make it appear authentic and company-generated. The release temporarily boosted Olema’s share price, allowing the defendants to sell large holdings at inflated prices and sidestep potential losses.
The DoJ also alleged that the group engaged in similar manipulation involving Opiant Pharmaceuticals, a company developing treatments for opioid overdoses.
The defendants face multiple counts, including securities fraud, conspiracy, insider trading and market manipulation. If convicted, they could each receive maximum prison sentences of between 20 and 25 years per count, according to prosecutors.
The case adds to a growing list of fraud-related prosecutions involving Nigerian nationals or dual citizens in the United States. Earlier this month, US authorities ordered the deportation of Oluwaseun Adekoya after he completes a 20-year prison sentence for his role in a $2 million bank fraud scheme, following convictions on conspiracy and aggravated identity theft charges.
Visit us for your world class legal outfits and accessories @1/3 simpsons street igbosere road opp lagos highcourt.Or call 080266887010, 08033855230.
http://www.yetmorislegal.org
“David Umahi is an engineer and a minister — yet a major road contract was awarded with no clear cost-per-kilometre disclosed. Anyone who asks for that basic transparency seems to be met with hostility. That lack of openness is worrying.”Chioma kate Unini
__________________________________
Spotlight on Politically Exposed Persons is available now on Amazon and MoreBooks. For more information, contact the author at peaceful_ugo@yahoo.co.uk or +447537802000.
For Advert Inquiries
Tele Phone/ WhatsApp Only /+234 8068191709/+2348035705292
E-mail: thenigerialawyers@gmail.com, editor@thenigerialawyer.com
For News/Article
E-mail: thenigerialawyers@gmail.com,
editor@thenigerialawyer.com
source
This is a newsfeed from leading technology publications. No additional editorial review has been performed before posting.
