Four Pakistanis holding dual citizenship with the United States and the United Kingdom are facing unprecedented prison exposure after being accused of orchestrating a large-scale insider trading and market manipulation scheme worth an estimated $41 million, according to court filings released by the US Department of Justice. Although formal trials have yet to begin, prosecutors describe the case as one of the most serious financial crime prosecutions involving foreign-linked defendants in recent years.
US authorities allege that the defendants played key roles in a coordinated scheme between 2020 and 2024 targeting healthcare and biotechnology stocks listed in the United States. Investigators claim the group illegally traded on material non-public information and manipulated stock prices through fabricated press releases and false or misleading clinical trial data. By artificially inflating share prices and selling at peak levels, the group allegedly generated tens of millions of dollars in unlawful profits.
The charges include securities fraud, insider trading, wire fraud, and multiple conspiracy offenses. Individual counts carry maximum prison sentences ranging from five to twenty-five years, and when combined, the total potential exposure reaches extraordinary levels. US prosecutors estimate that the alleged schemes produced at least $41 million in illicit gains.
The most severe legal exposure is faced by Muhammad Saad Shoukat and Muhammad Arham Shoukat, both dual US and Pakistani citizens, who are named across all twelve counts in the federal indictment. If convicted on every charge and sentenced consecutively, each could theoretically face up to 245 years in prison under US federal sentencing rules. Their brother, Muhammad Shahwaiz Shoukat, also a dual US and Pakistani citizen, is charged in nine counts and faces a potential maximum sentence of 180 years. Daniyal Khan, a dual UK and Pakistani citizen, is charged with six counts and could receive up to 115 years in prison if found guilty on all charges.
Additional defendants include Izunna Okonkwo, a dual US and Nigerian citizen, and Gyunho Justin Kim, a US-based investment banker accused of supplying confidential deal information used in the alleged insider trading activities. All cases are being prosecuted together in US federal court as part of a broader investigation into market manipulation and financial misconduct.
While legal experts note that these prison terms represent theoretical maximums rather than likely sentences, the scale of the charges highlights the seriousness of the allegations. Observers also warn that convictions in such a high-profile case could have wider implications, including stricter scrutiny, enhanced security checks, and long-term clearance challenges for Pakistani dual nationals operating in international financial and corporate environments.
