Boca Raton Resident Pleads Guilty to Insider Trading

MIAMI – A Boca Raton resident pled guilty today in the Southern District of Florida to securities fraud based on an insider trading scheme that netted over $420,000.

According to court documents, during a July 4^th gathering in 2020, Charles Lawrence Baugh, Sr. (“Baugh”), 60, learned of a pending partnership between Google LLC and ADT Inc. (“ADT”). Baugh also learned that Google LLC would be making a substantial investment in ADT.  At the time, ADT’s shares were publicly traded on the Nasdaq stock exchange.

A close family member who occupied a senior role at ADT revealed the pending partnership and investment to Baugh.  Baugh knew that the news was material, non-public information and that he had a duty to keep the information confidential.  Nonetheless, in violation of that duty, Baugh proceeded to purchase in trading accounts he controlled approximately 1,000 ADT call options and 800 ADT shares. Baugh began purchasing the securities on July 6, 2020—the first trading day after the July 4^th holiday.

In addition to trading in his own accounts, Baugh traded in ADT securities in the accounts of at least two other family members and convinced two additional family members to buy ADT securities, all while news of the partnership and investment was non-public.

On August 3, 2020, news of the partnership and investment became public. ADT’s share price increased over 50%. Baugh sold all 1,000 call options, netting over $314,000.

As part of his guilty plea, Baugh agreed to forfeit $316,044, all the proceeds from the scheme he personally received.

Baugh’s sentencing will take place before Judge Donald M. Middlebrooks at a later date.

U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and Special Agent in Charge Brett Skiles of the FBI Miami Field Office made the announcement.

The FBI Miami Field Office investigated the case. The U.S. Attorney’s Office appreciates the assistance of the U.S. Securities & Exchange Commission, who previously sued and settled with Baugh.

Assistant U.S. Attorney Eli S. Rubin is prosecuting the case. Assistant U.S. Attorney Josh Paster is handling asset forfeiture.

This is the fifth insider trading conviction in 2025 secured by the U.S. Attorney’s Office for the Southern District of Florida and the FBI Miami Field Office.  Convictions were previously obtained in United States v. Federico Nannini et al., 24-20398-CR, and United States v. Stephen George, 25-60011-CR.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number  25-cr-80089.

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