Six individuals, including a Nigerian, have been charged by the United States Federal Bureau of Investigation (FBI) for alleged involvement in “insider trading and market manipulation on a massive scale”.
The individuals were identified as Izunna Okonkwo, a
Nigerian; and four Pakistanis — Muhammad Saad Shoukat, Muhammad Arham Shoukat,
Muhammad Shahwaiz Shoukat, and Daniyal Khan.
Gyunho Justin Kim was charged in a separate complaint.
In a statement published on the website of the US department
of justice, the FBI said the suspects participated in “a years-long scheme to
trade securities based on material non-public information (MNPI)”.
The FBI said the suspects were charged to court in a case
that stemmed from “three overlapping securities fraud schemes that occurred at
various points from June 2020 through February 2024”.
The FBI said Kim worked at an investment bank that was
involved in multiple mergers and acquisitions of publicly traded healthcare and
biopharmaceutical companies, adding that he allegedly obtained MNPI about many
pending deals.
Kim was said to have illegally shared the MNPI with Muhammad
Saad Shoukat, who traded with the information, and shared same with others.
“Saad Shoukat also tipped off others — including Arham
Shoukat, Shahwaiz Shoukat, Khan, and Okonkwo — who similarly traded and
profited from the MNPI,” the FBI said.
“Overall, Saad Shoukat and his co-conspirators received
illicit profits from the insider trading scheme totalling at least $41 million.
“Saad Shoukat, Arham Shoukat, and others actively
manipulated the stock price of Olema, a publicly traded company. Olema focused
on developing breast cancer treatment through a drug called OP-1250.
“From the spring of 2021, Saad Shoukat and Arham Shoukat
began investing in Olema stock and encouraged others to invest in it.
“After buying substantial stock in Olema, Saad Shoukat,
Arham Shoukat, and others accessed confidential information showing that
OP-1250 was less effective than Saad Shoukat and Arham Shoukat had hoped.
“Saad Shoukat, Arham Shoukat, and others then falsified the
OP-1250 data the co-conspirators had illegally accessed, and publicly
disseminated it in a manner that made it look like the data was real and came
from Olema.
“The release of the false data — which inflated the drug’s
efficacy — temporarily caused Olema’s stock price to increase, during which
Saad Shoukat, Arham Shoukat, and others profited and avoided losses by selling
large numbers of shares in Olema stock.
“Saad Shoukat, his brothers, and others also manipulated the
stock price of Opiant, another publicly traded company. Opiant was developing
an opioid overdose treatment.
“Kim provided MNPI to Saad Shoukat about a company seeking
to acquire Opiant. Based on that MNPI, Saad Shoukat and others bought Opiant
stock. But that potential acquisition stalled, and Saad Shoukat and others were
stuck with their stock purchases.
“In response, in or around April 2022, Saad Shoukat, his
brothers, and others — using a fake Opiant website and fake Opiant email
addresses that appeared legitimate — caused the publication of a fake press
release announcing a purported merger and acquisition involving Opiant and
another company.
“The fake press release drove up Opiant’s stock
approximately 29%. Saad Shoukat, his brothers, and others profited by selling
off shares during that spike, causing substantial losses to victim investors.”
If convicted, the suspects risk more than 20 years
imprisonment.
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com