The FBI has identified Nigerian-American tech entrepreneur Izunna Okonkwo as a person of interest in an insider trading and money-laundering scheme that generated more than $41 million in illegal profits over several years, according to U.S. court filings reviewed by Tech Digest. Okonkwo, a co-founder of Pastel and a Forbes 30-Under-30 honouree, is alleged to have traded on confidential acquisition information leaked by U.S. investment banker Gyunho Justin Kim.
Federal investigators say Mr Kim, who worked at Citibank’s investment banking division in San Francisco, passed material non-public information about upcoming corporate acquisitions to his friend Saad Shoukat. Mr Shoukat allegedly relayed the tips to Okonkwo and other associates, enabling them to buy stocks ahead of major takeover announcements. According to an FBI complaint, Okonkwo allowed Mr Shoukat to trade through his brokerage accounts in exchange for keeping half of the profits.
Prosecutors detailed multiple trades linked to acquisitions by major pharmaceutical companies including Gilead, Amgen, GSK, Pfizer, Biogen, and AbbVie. In one instance, Okonkwo reportedly made $2.3 million from Gilead’s $21 billion takeover of Immunomedics in 2020. Additional trades in Five Prime, Sierra, GBT, Reata, and Immonogen brought the entrepreneur and his associates millions more. Investigators traced account logins to a London residence linked to Okonkwo, where Mr Shoukat is believed to have stayed while executing trades.
Court documents state that Okonkwo’s trades and those of his relatives yielded more than $7 million in profits, while the broader network—including the Shoukat brothers, Okonkwo, and another associate—earned at least $41 million collectively. Mr Kim is already facing six charges, including insider trading, wire fraud, and money laundering.
It remains unclear whether Okonkwo has been taken into custody. The indictment describes him as a dual Nigerian-American citizen operating between Lagos and Atlanta. Public records show Pastel, formerly Sabi Cash, has offices in Yaba, Lagos, while Okonkwo has previously maintained workspaces in the United States. He did not immediately respond to requests for comment, and a Pastel spokesperson declined to comment on the investigation.
