Feds Takes Down “The Olema Manipulation Scheme”
the staff of the Ridgewood blog
Wall Street NY, Federal authorities in Newark have dismantled a sophisticated, multi-million dollar securities fraud network that used stolen medical data and fake press releases to manipulate the stock market.
On December 31, 2025, federal prosecutors unsealed charges against six individuals—including an investment banker and three brothers—alleging they reaped over $41 million in illicit profits. The group is accused of exploiting sensitive information about life-saving treatments for breast cancer and opioid overdoses to cheat the financial system.
🏗️ Inside the Three-Tiered Fraud
According to Senior Counsel Philip Lamparello and the FBI, the defendants operated three overlapping schemes between 2020 and 2024.
1. The Banker’s Tip (The Insider Trading Scheme)
At the center of the web was Gyunho Justin Kim, 32, a San Francisco investment banker. Authorities allege Kim used his position to steal non-public information about nine pending mergers and acquisitions in the healthcare sector. He then allegedly tipped off Muhammad Saad Shoukat, who coordinated massive trades with his brothers and friends.
2. Falsifying Cancer Data (The Olema Manipulation Scheme)
In a particularly disturbing twist, the group allegedly targeted Olema Pharmaceuticals, a company developing a breast cancer treatment called OP-1250.
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After buying the stock, the group realized the drug wasn’t performing well.
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To avoid losses, they allegedly falsified medical data to make the drug appear more effective than it was.
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They disseminated this fake data publicly, causing the stock price to spike, allowing them to sell their shares at an inflated price to unsuspecting investors.
3. Fake Websites and “Ghost” Mergers (The Opiant Manipulation Scheme)
The defendants also allegedly manipulated the stock of Opiant, a company working on opioid overdose treatments. When a legitimate merger stalled, the group reportedly created a fake Opiant website and sent out fake press releases from legitimate-looking email addresses. The hoax drove the stock up 29% in a single day, allowing the conspirators to “dump” their shares.
⚖️ The Defendants: Who has been Charged?
The unsealed complaint names six individuals facing a litany of charges, including securities fraud, wire fraud, and market manipulation:
| Defendant | Role/Details |
| Gyunho Justin Kim | Investment Banker & Alleged “Leaker” (San Francisco) |
| Muhammad Saad Shoukat | Alleged Scheme Lead (33) |
| Muhammad Arham Shoukat | Brother & Co-conspirator (35) |
| Muhammad Shahwaiz Shoukat | Brother & Co-conspirator (36) |
| Daniyal Khan | Friend & Associate (33) |
| Izunna Okonkwo | Friend & Associate (33) |
“The defendants engaged in insider trading and market manipulation on a massive scale—using stolen information, falsified data, and fake press releases to mislead investors,” said Senior Counsel Lamparello.
🔒 Potential Penalties
The charges carry severe prison sentences. If convicted, the defendants face:
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Securities Fraud: Up to 25 years in prison.
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Wire Fraud Conspiracy: Up to 20 years in prison.
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Insider Trading: Up to 20 years in prison.
The FBI’s Newark field office emphasized that while financial schemes are becoming more complex, federal agents are leveraging new technology to stay “one step ahead” of digital fraudsters.
Scheme Summary at a Glance
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Total Illicit Profits: $41,000,000+
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Duration: June 2020 – February 2024
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Target Industries: Oncology (Breast Cancer) and Addiction Medicine (Opioids)
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Agencies Involved: FBI Newark and U.S. Attorney’s Office
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typical foreigners come here to scam the system
surnames tell the story as usual
Obviously, all Mormons. These people need to be stopped!