A Boca Raton resident, Charles Lawrence Baugh, Sr., has pled guilty to securities fraud in the Southern District of Florida. The charge stems from an insider trading scheme that resulted in over $420,000 in profits.
Court documents reveal that Baugh learned about a forthcoming partnership between Google LLC and ADT Inc. during a family gathering on July 4, 2020. This information included Google’s significant investment in ADT, whose shares were publicly traded on Nasdaq at the time.
The source of this confidential information was a close family member holding a senior position at ADT. Despite understanding the materiality and confidentiality of the information, Baugh purchased approximately 1,000 ADT call options and 800 ADT shares starting July 6, 2020.
Baugh’s activities extended beyond his accounts as he traded ADT securities for at least two other family members and persuaded two more to invest before the news became public.
On August 3, 2020, following the public announcement of the partnership and investment, ADT’s share price surged by over 50%. Baugh sold all his call options for more than $314,000.
As part of his plea agreement, Baugh will forfeit $316,044—his personal gains from the scheme. His sentencing is pending before Judge Donald M. Middlebrooks.
The case was announced by U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and Special Agent Brett Skiles of the FBI Miami Field Office. The investigation was conducted by the FBI Miami Field Office with assistance from the U.S. Securities & Exchange Commission.
Assistant U.S. Attorney Eli S. Rubin is leading the prosecution while Assistant U.S. Attorney Josh Paster handles asset forfeiture proceedings.
This conviction marks the fifth insider trading case concluded by authorities in South Florida this year. Previous convictions include United States v. Federico Nannini et al., and United States v. Stephen George.
For further details on related court documents and information can be accessed through the Southern District of Florida’s website or via PACER under case number 25-cr-80089.
