The FBI has named Nigerian-American tech entrepreneur and Pastel co-founder, Izunna Okonkwo—also a 2023 Forbes 30-under-30 honouree—as a key figure in a sweeping insider trading and money-laundering scheme that allegedly generated more than $41 million over a five-year period, according to U.S. court filings.
Investigators allege that Okonkwo, 30, traded stocks using confidential merger and acquisition information leaked by Citibank banker Gyunho Justin Kim to his friend Saad Shoukat, who then passed the intel to Okonkwo and others. The three men, who met during their university years, maintained a close friendship that prosecutors say later evolved into criminal collaboration.
According to court documents, Okonkwo was fully aware that Kim was the source of the illicit tips. FBI Special Agent Antony Belitti noted that Okonkwo and Shoukat exchanged encrypted messages discussing the impending Reata Pharmaceuticals deal before it was made public. Belitti added that the pair also discussed assisting Kim in securing a new job.
Prosecutors alleged that Shoukat and Okonkwo drafted an arrangement granting Shoukat access to Okonkwo’s brokerage accounts in exchange for splitting profits from the trades.
The insider trading activity spanned multiple high-profile acquisitions, including Gilead–Immunomedics, Amgen–Five Prime, GSK–Sierra, Pfizer–GBT, Biogen–Reata, and AbbVie–ImmunoGen.
FBI investigators traced logins to Okonkwo’s trading accounts back to his London residence—the same address used by Shoukat when executing his trades.
Okonkwo reportedly made $2.3 million from the Immunomedics deal alone, while other transactions brought in additional millions, including $3.5 million earned shortly before Pastel announced its $5.5 million seed funding round.
Prosecutors informed a magistrate judge that the collective profits from the scheme exceeded $41 million. Kim has been charged with insider trading, wire fraud, and money laundering.
It is still unclear whether Okonkwo has been taken into custody. He is known to operate between Lagos and Atlanta and has not responded to requests for comment. A spokesperson for Pastel also declined to offer any clarification.