Boca Raton resident Charles Lawrence Baugh, Sr. has admitted to engaging in insider trading, pleading guilty to securities fraud in the Southern District of Florida. Baugh’s illicit activities, which involved trading securities based on non-public, material information concerning a partnership and investment deal between Google LLC and ADT Inc., allowed him to net profits exceeding $420,000, as per court documents referenced by the U.S. Attorney’s Office.
The case unveiled that Baugh used details shared during a July 4th celebration in 2020, before the public announcement of the partnership. Court filings reveal that he was tipped off by a family member with a senior role at ADT. He went on to quickly purchase roughly 1,000 ADT call options and 800 ADT shares after the market opened post-holiday. Baugh chose to also involve at least two additional family members in the trading while the partnership news was still under wraps.
Upon public disclosure of the Google-ADT partnership on August 3, 2020, ADT’s shares soared by over 50%, at which point Baugh sold all his call options, reaping over $314,000 in profits. As part of his plea deal, Baugh has agreed to forfeit $316,044, representing the total gains he personally received from his scheme, according to the Southern District of Florida’s U.S. Attorney’s Office…