Washington, Dec 20 (NationPress) Four individuals of Pakistani descent, comprising three residing in the United States and one in the United Kingdom, have been implicated among six individuals charged by US federal authorities in a significant $41 million insider trading and market manipulation scandal concerning cancer medication and opioid treatment firms, as evidenced by court documents.

The US Attorney's Office revealed the charges in the District of New Jersey, indicating that the defendants executed a prolonged scheme to trade securities using material non-public information (MNPI), distort clinical data, and issue fraudulent press releases to manipulate stock prices, thereby unjustly profiting at the expense of investors, particularly Pakistani Americans.

The individuals facing charges include brothers Muhammad Saad Shoukat (33), Muhammad Arham Shoukat (35), and Muhammad Shahwaiz Shoukat (36) — all identified as dual US-Pakistani citizens — alongside Danyal Khan (33), a dual UK-Pakistani citizen.

Additional charges have been filed against Izunna Okonkwo (33), a dual US-Nigerian citizen, and Gyunho Justin Kim (32), a resident of San Francisco.

“As stated, the defendants engaged in extensive insider trading and market manipulation — utilizing stolen information, falsified data, and deceptive press releases to mislead investors and enrich themselves,” said Senior Counsel Philip Lamparello.

According to prosecutors, the case involves three interconnected securities fraud schemes that took place between June 2020 and February 2024: a multi-million-dollar insider trading operation, a scheme manipulating the stock of a breast cancer drug under development, and another plot aimed at inflating the stock of a company focused on opioid overdose treatments.

Federal authorities alleged that Kim, who was employed at an investment bank specializing in healthcare mergers and acquisitions, acquired MNPI about impending deals and shared it with Saad Shoukat, who subsequently traded on the information directly as well as through associates.

Saad Shoukat allegedly informed others, including his brothers, Khan, and Okonkwo, enabling the group to earn at least $41 million in illicit profits solely from insider trading.

The second scheme concentrated on Olema Pharmaceuticals, a publicly traded company advancing a breast cancer treatment known as OP-1250. Prosecutors asserted that Saad and Arham Shoukat, after making substantial investments in the stock, acquired confidential information indicating the drug was less effective than anticipated. They then falsified clinical data and publicly disseminated it to lend credibility to their claims, temporarily boosting Olema's stock price before selling large quantities for profit.

A third scheme involved Opint, another publicly traded entity working on treatments for opioid overdoses. Prosecutors indicated that the defendants exploited MNPI and created a fabricated merger announcement — complete with a bogus website and email addresses — to elevate Opint's stock price by approximately 29 percent. The group then sold shares during this surge, leading to significant losses for investors once the truth was revealed.

“The FBI treats allegations of insider trading with the utmost seriousness,” remarked FBI Newark Special Agent in Charge Stefanie Roddy.

The defendants are facing multiple charges, including conspiracy to commit securities fraud, insider trading, wire fraud, and market manipulation. If found guilty, some charges could lead to maximum sentences of up to 25 years in prison. This criminal complaint detailing the alleged actions was unsealed this week in federal court in New Jersey.

Kim was charged separately and made his initial court appearance earlier this week, while the remaining defendants were charged in the unsealed complaint, according to prosecutors.