The Securities and Exchange Commission today charged private investor George W. Haywood with insider trading in connection with his selling shares of Neurotrope, Inc. (NTRP) based on material, nonpublic information he received about NTRP's impending registered direct offering of shares.

The SEC's complaint, filed in federal district court in the District of Columbia, alleges that in January 2020, NTRP invited Haywood to participate in a registered direct offering of shares. Before being told about the offering, Haywood expressly agreed not to trade on the material, nonpublic information he was about to receive. Notwithstanding this agreement, after receiving information about the offering, Haywood immediately sold more than 100,000 shares of NTRP stock. As alleged in the complaint, NTRP's stock price dropped nearly 50 percent after the offering was announced. The complaint alleges that Haywood avoid losses of approximately $179,297.

The SEC's complaint charges Haywood, a District of Columbia resident, with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Haywood has agreed to be permanently enjoined from violating those provisions, be barred from serving as an officer or director of a public company, and to pay disgorgement, prejudgment interest, and a civil penalty to be determined by the Court at a later date. The settlement is subject to Court approval.

In a parallel action, the U.S. Attorney for the District of Columbia filed a criminal charge against Haywood arising out of the same conduct.

The SEC's investigation was conducted by Norman P. Ostrove with assistance from Patrick McCluskey of the Enforcement Division's Market Abuse Unit. It was supervised by Scott A. Thompson of the Philadelphia Regional Office and Julia C. Green and Joseph G. Sansone of the Market Abuse Unit. The litigation will be led by Gregory R. Bockin and Karen M. Klotz. The SEC appreciates the assistance of the Federal Bureau of Investigation and the U.S. Attorney's Office for the District of Columbia.