SIX individuals have been charged over their alleged roles in a years-long insider trading and market manipulation scheme that generated at least $41 million in illicit profits, United States’ authorities said on Monday
Senior Counsel, Mr Philip Lamparello, said the defendants exploited material non-public information (MNPI), falsified data and fake press releases to deceive investors and manipulate stock prices in the U.S..
He said the alleged conduct amounted to ‘insider trading and market manipulation on a massive scale,’ noting that prosecutors would continue to pursue complex financial crimes that undermined market integrity.
FBI Newark Special Agent in Charge, Ms Stefanie Roddy, said the bureau took insider trading allegations seriously, noting that the defendants were accused of cheating the system for personal gain over several years.
Those charged included: Mr Muhammad Saad Shoukat, 33; his brothers Mr Muhammad Arham Shoukat, 35, and Mr Muhammad Shahwaiz Shoukat, 36—dual US-Pakistani citizens; as well as their associates Mr Daniyal Khan, 33, a dual UK-Pakistani citizen, and Mr Izunna Okonkwo, 33, a dual U.S.-Nigerian citizen.
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Gyunho Justin Kim, 32, of San Francisco, was charged separately and made an initial court appearance on December 12, 2025.
According to court filings, the case centred on three overlapping schemes carried out between June 2020 and February 2024: A multimillion-dollar insider trading operation, and two market manipulation schemes involving publicly traded biopharmaceutical companies, Olema Pharmaceuticals, which was developing a breast cancer treatment, and Opiant Pharmaceuticals, focused on opioid overdose prevention.
Insider trading scheme
Prosecutors alleged that Kim, an employee at an investment bank involved in healthcare mergers and acquisitions, obtained MNPI on at least 9 pending deals. He allegedly shared the information with Mr Saad Shoukat, who traded on it personally and tipped off others, including his brothers, Khan and Okonkwo. The group was accused of earning at least $41 million in illegal profits.
Olema manipulation scheme
Authorities said Saad and Mr Arham Shoukat and others invested heavily in Olema shares, later obtained confidential data showing its breast cancer drug, OP-1250, was less effective than expected, and then falsified the data.
The manipulated information was publicly disseminated to inflate the stock price, allowing the conspirators to sell shares at a profit and avoid losses.
Opiant manipulation scheme
In a separate scheme, the defendants allegedly created fake Opiant websites and email addresses to circulate a false press release announcing a merger after a real acquisition attempt stalled. The fake announcement reportedly drove Opiant’s stock up about 29 percent, enabling the defendants to sell their holdings at inflated prices, while investors suffered losses.
If convicted, the defendants face multiple counts, including conspiracy to commit securities fraud, insider trading, wire fraud and market manipulation, with potential maximum sentences ranging from 5 to 25 years per count.
The investigation was led by the FBI’s Newark office, while prosecutors from the U.S. Attorney’s Office in New Jersey are handling the case.
Insider trading defined
Insider trading is a serious offence in the U.S. According to Investopedia, a financial information dictionary, “Insider trading is the buying or selling of a company’s securities by individuals who possess material, nonpublic information about that company.”
“Public trust is essential to the fair and efficient operation of our markets. But when public company insiders take advantage of their status for personal gain, the investing public loses confidence that the markets work fairly and for them,” said Director of the Securities and Exchange Commission (SEC)’s Division of Enforcement, Mr Gurbir S. Grewal, as quoted by Investopedia.
The SEC defines an insider as “an officer, director, 10% stockholder and anyone who possesses inside information because of his or her relationship with the Company or with an officer, director or principal stockholder of the Company.”
In the U.S., insider trading is illegal, according to the nation’s SEC, saying that it’s “the buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, based on material, nonpublic information about the security.”
