FBI links Nigerian-American tech entrepreneur to alleged $41m insider trading scheme
Story by Okafor Vivian
The United States Federal Bureau of Investigation (FBI) has identified Nigerian-American entrepreneur Izunna Okonkwo, co-founder of the Lagos-based tech start-up Pastel, as a person of interest in an alleged $41 million insider trading and money laundering scheme.
According to U.S. prosecutors, Okonkwo is suspected of receiving confidential, market moving information about major corporate acquisitions before they were publicly announced. The information was allegedly passed through an intermediary linked to a Citibank insider in New York.
Investigators say the insider provided advance details of upcoming mergers and acquisitions to an associate, Saad Shoukat, who is accused of relaying them to Okonkwo and others. Armed with the non-public information, the group reportedly purchased stocks of targeted companies and made enormous profits once the acquisitions became public and share prices surged.
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The complaint highlights several deals, including the 2020 acquisition of Immunomedics by Gilead Sciences, and other high-value transactions that allegedly produced millions of dollars in illicit gains for the network.
Although prosecutors have named Okonkwo as a key figure in the scheme, the report does not state whether he has been arrested or formally charged. Investigators note that he operates between Lagos and Atlanta, raising potential jurisdictional challenges as the probe deepens.
The case, which spans international borders, has drawn significant attention due to Okonkwo’s profile as a rising tech founder previously celebrated in entrepreneurial circles. Authorities say investigations are ongoing, with more disclosures expected as U.S. financial-crime agencies continue to unravel the alleged network.
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