Six individuals, including a Nigerian, have been charged bythe United States Federal Bureau of Investigation (FBI) for alleged involvementin “insider trading and market manipulation on a massive scale”. The individuals were identified as Izunna Okonkwo, aNigerian; 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 departmentof justice, the FBI said the suspects participated in “a years-long scheme totrade securities based on material non-public information (MNPI)”. The FBI said the suspects were charged to court in a casethat stemmed from “three overlapping securities fraud schemes that occurred atvarious points from June 2020 through February 2024”. The FBI said Kim worked at an investment bank that wasinvolved in multiple mergers and acquisitions of publicly traded healthcare andbiopharmaceutical companies, adding that he allegedly obtained MNPI about manypending deals. Kim was said to have illegally shared the MNPI with MuhammadSaad Shoukat, who traded with the information, and shared same with others. “Saad Shoukat also tipped off others — including ArhamShoukat, Shahwaiz Shoukat, Khan, and Okonkwo — who similarly traded andprofited from the MNPI,” the FBI said. “Overall, Saad Shoukat and his co-conspirators receivedillicit profits from the insider trading scheme totalling at least $41 million. “Saad Shoukat, Arham Shoukat, and others activelymanipulated the stock price of Olema, a publicly traded company. Olema focusedon developing breast cancer treatment through a drug called OP-1250. “From the spring of 2021, Saad Shoukat and Arham Shoukatbegan 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 thatOP-1250 was less effective than Saad Shoukat and Arham Shoukat had hoped. “Saad Shoukat, Arham Shoukat, and others then falsified theOP-1250 data the co-conspirators had illegally accessed, and publiclydisseminated it in a manner that made it look like the data was real and camefrom Olema. “The release of the false data — which inflated the drug’sefficacy — temporarily caused Olema’s stock price to increase, during whichSaad Shoukat, Arham Shoukat, and others profited and avoided losses by sellinglarge numbers of shares in Olema stock. “Saad Shoukat, his brothers, and others also manipulated thestock price of Opiant, another publicly traded company. Opiant was developingan opioid overdose treatment. “Kim provided MNPI to Saad Shoukat about a company seekingto acquire Opiant. Based on that MNPI, Saad Shoukat and others bought Opiantstock. But that potential acquisition stalled, and Saad Shoukat and others werestuck with their stock purchases. “In response, in or around April 2022, Saad Shoukat, hisbrothers, and others — using a fake Opiant website and fake Opiant emailaddresses that appeared legitimate — caused the publication of a fake pressrelease announcing a purported merger and acquisition involving Opiant andanother company. “The fake press release drove up Opiant’s stockapproximately 29%. Saad Shoukat, his brothers, and others profited by sellingoff shares during that spike, causing substantial losses to victim investors.” If convicted, the suspects risk more than 20 yearsimprisonment.
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