FBI Links Pastel Co-Founder Izunna Okonkwo & Others to $41m Insider Trading Scandal

U.S. federal investigators have linked Izunna Okonkwo, Nigerian-American tech entrepreneur and 2023 Forbes 30 Under 30 honouree, to an alleged $41 million insider trading scheme uncovered through newly released court documents. Okonkwo, co-founder of the fintech startup Pastel, is described as a key participant in a long-running network accused of profiting from confidential merger and acquisition information.

According to the filings, the FBI claims Okonkwo benefited from non-public deal intel leaked by Citibank investment banker Gyunho Justin Kim. Prosecutors say Kim passed sensitive acquisition details to his friend Saad Shoukat, who then relayed the information to Okonkwo and other traders for coordinated stock purchases.

Investigators revealed that the three men met in college, and their friendship later evolved into what authorities describe as a structured insider trading operation. FBI Special Agent Antony Belitti noted that encrypted conversations between Shoukat and Okonkwo referenced upcoming pharmaceutical deals before they were announced publicly, as well as discussions about helping Kim secure new employment—further indicating Okonkwo’s awareness of the leak.

Prosecutors also allege that Okonkwo and Shoukat drafted an agreement allowing Shoukat to execute trades through Okonkwo’s brokerage accounts, with profits shared between them. The scheme reportedly targeted major pharmaceutical acquisitions, including Pfizer-GBT, GSK-Sierra, Gilead-Immunomedics, AbbVie-ImmunoGen, Biogen-Reata, and Amgen-Five Prime.

The FBI says login data traced trading activity directly to Okonkwo’s London residence, the same address linked to Shoukat’s trading sessions. The Immunomedics deal alone allegedly yielded $2.3 million for Okonkwo, with additional transactions generating millions more—including $3.5 million made shortly before Pastel secured its $5.5 million seed round.

Prosecutors told the court the network earned over $41 million in total illicit profits. Kim now faces charges of insider trading, wire fraud, and money laundering.

It is currently unknown whether Okonkwo has been detained. He reportedly operates between Lagos and Atlanta, and both he and Pastel declined to comment when contacted.