A twin United States–Nigerian citizen, Izunna Okonkwo, has been indicted alongside 5 different people of various nationalities over allegations bordering on $41 million inventory market fraud in the US.
A press release obtained from the web site of the US Division of Justice on Sunday mentioned Okonkwo and the opposite defendants allegedly engaged in insider buying and selling between June 2020 and February 2024.
In response to the assertion, the six suspects have been charged on Friday for his or her alleged roles in a years-long scheme involving the buying and selling of securities primarily based on materials personal data.
The opposite defendants have been recognized as Muhammad Saad Shoukat, 33; his brothers, Muhammad Arham Shoukat, 35, and Muhammad Shahwaiz Shoukat, 36—all twin US-Pakistani residents—and their pal, Daniyal Khan, 33, a twin UK-Pakistani citizen.
Explaining the alleged insider buying and selling scheme, the Division of Justice mentioned a person recognized as Kim labored at an funding financial institution concerned in a number of mergers and acquisitions of publicly traded healthcare and biopharmaceutical firms.
“Kim obtained materials personal details about many of those pending offers, both by engaged on the offers immediately or from others who did,” the assertion mentioned.
The knowledge was allegedly shared with Saad Shoukat, who traded on it personally and thru others. Saad Shoukat was additionally accused of tipping off Arham Shoukat, Shahwaiz Shoukat, Khan, and Okonkwo, who allegedly traded and profited from the knowledge.
“Total, Saad Shoukat and his co-conspirators obtained illicit income from the insider buying and selling scheme totalling at the least $41 million,” the assertion added.
The defendants have been additionally accused of collaborating in what authorities described because the Olema Manipulation Scheme.
Prosecutors alleged that Saad Shoukat, Arham Shoukat, and others manipulated the inventory worth of Olema, a publicly traded firm creating a breast most cancers remedy drug often known as OP-1250.
In response to the assertion, the group invested closely in Olema inventory from spring 2021 and later accessed confidential information indicating the drug was much less efficient than anticipated. They allegedly falsified the information and publicly disseminated it in a means that made it seem genuine and as if it originated from Olema.
The discharge of the false information reportedly inflated Olema’s inventory worth quickly, permitting the defendants to revenue and keep away from losses by promoting massive volumes of shares.
They have been additionally accused of manipulating the inventory worth of Opiant, one other publicly traded firm concerned in opioid overdose remedy improvement.
The Division of Justice mentioned the defendants face a number of expenses, together with conspiracy, insider buying and selling, and inventory manipulation, with most jail sentences starting from 20 to 25 years on every depend if convicted.
Okonkwo is just not the primary Nigerian to face fraud-related expenses in the US. On December 4, US authorities ordered the deportation of a Nigerian, Oluwaseun Adekoya, after finishing a 20-year jail sentence for his position in a $2 million fraud scheme.
The Division mentioned Adekoya was convicted of conspiracy to commit financial institution fraud, conspiracy to commit cash laundering, and 9 counts of aggravated id theft following a three-week trial.
