District Financial Services Professional Pleads Guilty to Federal Insider Trading Charge | USAO-DC

WASHINGTON — George Haywood, 69, of Washington, DC, pleaded guilty today to one count of insider trading, U.S. Attorney Matthew M. Graves and Special Agent in Charge Wayne A. Jacobs announced. of the Criminal Division of the FBI’s Washington Field Office.

Haywood pleaded guilty in U.S. District Court for the District of Columbia. The Honorable Reggie B. Walton has sentenced November 9, 2022.

“Insider trading undermines confidence in our financial markets and hurts ordinary investors who play by the rules,” said U.S. Attorney Graves. “George Haywood placed himself above the law by using information to which he had privileged access to mislead the market and other investors. Our Office will continue to work with our law enforcement partners to maintain the integrity of the capital markets.

“Mr. Haywood has put himself and his own financial interests above the rule of law,” Special Agent-in-Charge Jacobs said. abusing access to non-public information. I want to thank those who investigated this case and who work every day to ensure that individuals are held accountable for undermining the integrity of our financial markets.

According to court documents, Haywood is a financial services professional based in the District of Columbia who managed investments on behalf of his family and friends. On January 22, 2020, at approximately 9 a.m., Neurotrope, a clinical-stage biopharmaceutical company (now known as Synaptogenix) announced that it had been awarded a $2.7 million grant from the National Institutes of Health at the following positive clinical trial results for a drug for the treatment of Alzheimer’s disease. This caused its share price to rise to a high of $3.85 per share.

Later that day, around 12:50 p.m., Haywood spoke to a Neurotrope representative by phone. The person has offered to share material non-public information relating to Neurotrope with Haywood so long as Haywood agrees not to execute or attempt to execute any stock trades with such information. Haywood has agreed to receive Material Nonpublic Information, subject to these Terms. The rep then informed Haywood that Neurotrope would be doing a direct registered placement later that day and invited him to participate. The offer was expected to depress Neurotrope’s share price.

Immediately after receiving material nonpublic information, Haywood sold or attempted to sell shares of Neurotrope worth more than $328,701.16, despite agreeing to receive the information and not to execute or attempt to execute a stock transaction with it. Based on the daily closing price of $1.42 per share, Haywood avoided a loss of at least $179,297.18 on the sale of these shares between the time it received the material nonpublic information and when the registered direct offer was announced to the public.

The case has been investigated by the FBI’s Washington field office and is being prosecuted by Assistant U.S. Attorneys Elizabeth Aloi and John Borchert.

A parallel civil enforcement proceeding has been filed by the Philadelphia Regional Office of the Securities and Exchange Commission, edited by Norman P. Ostrove: https://www.sec.gov/litigation/litreleases/2022/lr25440. html

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