U.S. federal investigators have placed Izunna Okonkwo, the Nigerian-American entrepreneur celebrated for his inclusion in the 2023 Forbes 30 Under 30 list, at the center of a widening investigation into an alleged insider trading and money-laundering network that prosecutors say raked in more than $41 million in unlawful gains.
Okay News reports that the FBI identified Okonkwo as a person of interest in a case spanning multiple U.S. financial markets and several major pharmaceutical mergers.
According to court documents filed in the United States, the FBI believes Okonkwo—co-founder of Lagos- and Atlanta-linked fintech startup Pastel—executed trades using confidential acquisition intelligence that originated inside Citibank.
Investigators allege that investment banker Gyunho Justin Kim leaked price-sensitive details to his friend Saad Shoukat, who in turn passed the information to Okonkwo and other associates.
The FBI’s narrative suggests a long-running relationship between the men, beginning during their university years and evolving into what prosecutors describe as a deliberate and coordinated financial scheme.
In an affidavit submitted to the court, FBI Special Agent Antony Belitti stated, “Okonkwo knew that Kim worked at the investment bank, and Saad Shoukat and Okonkwo communicated on an encrypted messaging app about the impending Reata deal before it was public.” The filing also asserts that Okonkwo and Shoukat discussed assisting Kim with job prospects while continuing to rely on his access to restricted market information.
U.S. prosecutors say the alleged scheme involved a profit-sharing agreement that allowed Shoukat to execute trades using Okonkwo’s brokerage accounts, with both men benefiting financially. Digital forensic records reportedly tie login activity on those accounts to Okonkwo’s residence in London, which investigators said was also used to facilitate Shoukat’s trades.
The alleged insider activity touched several headline-making corporate transactions, including acquisitions involving Gilead, Amgen, Pfizer, Biogen, GSK, and AbbVie. One of the most lucrative deals, the Immunomedics takeover, is said to have yielded approximately $2.3 million in gains for Okonkwo alone. Other transactions collectively added millions more, including roughly $3.5 million earned shortly before Pastel announced its $5.5 million seed funding round.
In their briefing to a U.S. magistrate judge, prosecutors outlined what they described as “a multi-year, multi-layered operation” whose combined profits surpassed $41 million. Kim is already facing charges of insider trading, wire fraud and money laundering, with the Justice Department describing him as the original source of the illicit intelligence.
As of publication, the status of Okonkwo’s whereabouts remains unclear.
