Four Pakistanis Face Centuries in US Prison Over $41 Million Insider Trading Case

Four Pakistani-linked individuals holding dual US and UK citizenships are facing extraordinarily long prison sentences in the United States after being accused of orchestrating a $41 million insider trading and market manipulation scheme, according to court documents released by the US Department of Justice (DoJ).

The cases have been formally identified, though trials are yet to begin. US prosecutors allege that the accused played key roles in a multi-year scheme running from 2020 to 2024, involving US healthcare and biotechnology stocks.

According to the indictment, the group allegedly traded on material non-public information and manipulated stock prices through fake press releases and fabricated clinical data. Authorities claim the defendants artificially inflated share prices before selling their holdings for illegal profits.

The charges include securities fraud, insider trading, wire fraud, and multiple conspiracy offences, with individual counts carrying maximum prison sentences ranging from five to 25 years. Combined, the alleged schemes generated at least $41 million in unlawful gains, prosecutors said.

The most serious legal exposure is faced by Muhammad Saad Shoukat and Muhammad Arham Shoukat, both dual US-Pakistani citizens, who are named in all 12 criminal counts. If convicted on all charges and sentenced consecutively, each could face a maximum sentence of 245 years under US federal law.

A third brother, Muhammad Shahwaiz Shoukat, is charged in nine counts and faces a potential 180-year prison term. Meanwhile, Daniyal Khan, a dual UK-Pakistani citizen, is charged with six counts and could face up to 115 years in prison.

Other defendants include Izunna Okonkwo, a dual US-Nigerian citizen, and Gyunho Justin Kim, a US-based investment banker accused of providing confidential deal information. Their cases are being prosecuted alongside the Pakistani-linked defendants in US federal court.

Legal experts note that while the stated prison terms represent maximum theoretical sentences, the case remains serious and could have wider implications. If convictions occur, Pakistani dual nationals may face stricter scrutiny and security clearance challenges in the future.

PK Public News provide you the latest news from all over the Pakistan so also follow our Facebook, TikTok and Instagram.

Facebook: https://www.facebook.com/share/1Qy8uykxRF/

TikTok: https://www.tiktok.com/@pk.public.news?_r=1&_t=ZS-92jAYEeLTKj

Instagram: https://www.instagram.com/pkpublicnews_1022?igsh=c3AwcnYxYnVpdm45