The FBI has identified Nigerian-American tech entrepreneur Izunna Okonkwo, co-founder of Pastel and a 2023 Forbes 30-under-30 honouree, as a person of interest in an insider trading and money-laundering scheme that allegedly generated at least $41 million over five years, according to U.S. court filings.
Investigators said Mr Okonkwo, 30, traded stocks using confidential acquisition intel leaked by Citibank banker Gyunho Justin Kim to his friend, Saad Shoukat, who then relayed the information to Mr Okonkwo and others.
The men met in college and maintained a long-running friendship that prosecutors said evolved into criminal conduct.
Court filings stated that Mr Okonkwo knew Mr Kim was the source of the illicit tips. “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,” FBI Special Agent Antony Belitti wrote. He added that both men also discussed helping Mr Kim find a new job.
Prosecutors said Mr Shoukat and Mr Okonkwo drafted an agreement allowing him to trade through Mr Okonkwo’s brokerage accounts in exchange for splitting profits.
The scheme touched several major deals, including Gilead-Immunomedics, Amgen-Five Prime, Gsk-Sierra, Pfizer-Gbt, Biogen-Reata and Abbvie-Immunogen.
The FBI traced logins on Mr Okonkwo’s accounts to his London residence, the same address used for Mr Shoukat’s trades.
The Immunomedics acquisition earned Mr Okonkwo $2.3 million, while later deals brought millions more, including $3.5 million shortly before Pastel announced raising $5.5 million in seed funding.
Prosecutors told a magistrate judge that the collective profits of the accused exceeded $41 million. Mr Kim faces charges of insider trading, wire fra¥d and money laundering.
It remains unclear whether Mr Okonkwo has been detained. He operates between Lagos and Atlanta and did not respond to requests for comment. A Pastel spokesperson also declined to comment.