Six Charged in $41 Million Insider Trading Tied to Biopharmaceutical Stocks

Federal prosecutors allege years-long insider trading and market manipulation involving cancer and opioid treatment companies

Six individuals, including three brothers, face federal charges in connection with an alleged $41 million securities fraud and market manipulation scheme centered on confidential information about biopharmaceutical companies, according to court documents unsealed this week.

“As alleged, the defendants engaged in insider trading and market manipulation on a massive scale—using stolen information, falsified data, and fake press releases to mislead investors and enrich themselves. This Office will continue to pursue complex financial fraud schemes that threaten the fairness and transparency of our markets and harm individual investors.” - Senior Counsel Philip Lamparello

Key Facts:

Who: The defendants include Muhammad Saad Shoukat, 33, his brothers Muhammad Arham Shoukat, 35, and Muhammad Shahwaiz Shoukat, 36—all dual U.S.-Pakistani citizens—along with Daniyal Khan, 33, a U.K.-Pakistani citizen; Izunna Okonkwo, 33, a U.S.-Nigerian citizen; and Gyunho Justin Kim, 32, of San Francisco.
What: The group is charged with engaging in insider trading and manipulating the stock prices of two biopharmaceutical companies, Olema and Opiant, between 2020 and 2024.
Where: The charges stem from an investigation led by the FBI’s Newark Division, with prosecution by the U.S. Attorney’s Office for the District of New Jersey.
When: The alleged activity occurred from June 2020 through February 2024; charges were unsealed in December 2025.
Why: Prosecutors allege the defendants used confidential corporate information and falsified data to artificially inflate stock prices, then profited from the resulting market movements.
How: The schemes involved misappropriated insider information from a financial institution, falsified clinical trial data, and a fabricated press release related to a merger.

Allegations: Insider Trading and Market Manipulation

Federal authorities allege that Gyunho Justin Kim, who worked at an investment bank involved in healthcare mergers, illegally passed material non-public information (MNPI) to Saad Shoukat. Saad Shoukat, in turn, allegedly traded on that information and shared it with others in his network, including his brothers and co-defendants. The trades reportedly generated illicit profits exceeding $41 million.

In a separate but related scheme, the Shoukat brothers allegedly manipulated the stock price of Olema, a company developing a breast cancer treatment known as OP-1250. According to the complaint, after acquiring Olema shares, the conspirators accessed and falsified confidential efficacy data for OP-1250 and disseminated it as legitimate, temporarily boosting the company’s stock value. They then sold their shares at a profit.

A third scheme focused on Opiant, a firm working on opioid overdose treatments. Prosecutors claim that, after a potential acquisition of Opiant stalled, the conspirators created a fake company website and email accounts to issue a false press release about a fabricated merger. This caused Opiant’s stock price to spike nearly 30%, enabling the defendants to profit by offloading their holdings.

“The FBI takes allegations of insider trading with the utmost seriousness,” said FBI Newark Special Agent in Charge, Stefanie Roddy. “Shoukat and his co-conspirators benefitted greatly from their years-long scheme, and cheated the system to reap their rewards. As complex as a financial fraud scheme is, the FBI will endeavor to stay one step ahead of these alleged criminals.”

Legal Exposure and Charges

The defendants face a total of 12 counts across the alleged schemes, including conspiracy to commit securities fraud, insider trading, wire fraud, and market manipulation. Each charge carries significant penalties, with some counts allowing for maximum sentences of up to 25 years in prison.

Here is a breakdown of select charges:

Securities fraud: Up to 25 years
Insider trading: Up to 20 years
Wire fraud: Up to 20 years
Market manipulation: Up to 25 years

Investigative and Legal Oversight

Senior Counsel Philip Lamparello announced the charges, crediting the Federal Bureau of Investigation, under Special Agent in Charge Stefanie Roddy, for the investigation. The case is being prosecuted by Assistant U.S. Attorneys George Barchini and Aaron Webman, from the U.S. Attorney’s Office in Newark.

All defendants are presumed innocent until proven guilty in a court of law. The complaints represent formal allegations, and trials or plea proceedings have not yet been scheduled.

This case marks one of the more significant insider trading prosecutions involving New Jersey-based investigative work in recent years, particularly given the use of falsified scientific data and fake media to manipulate pharmaceutical stock markets—a sector that is often sensitive to clinical and acquisition news.