2024-07-30 sec-litreleases litigation_release 65 KB 1,980 chars

SEC v. Charles Baugh, No. LR-26062, Southern District of Florida (July 30, 2024) — Press Release

raw: Charles Baugh

Charles Baugh, No. 9:24-cv-80919 (July 30, 2024)

Caption
Securities and Exchange Commission v. Baugh
Source PDF JSON
summary

Charles Baugh was charged by the SEC for insider trading in ADT, Inc. securities and agreed to a final judgment involving over $844,000 in total payments.

paragraph

Charles Baugh was charged with violating Section 10(b) of the Securities Exchange Act of 1934 for insider trading involving ADT, Inc. securities. The scheme generated approximately $397,000 in total profits following the announcement of a partnership between ADT and Google LLC. Baugh agreed to a final judgment requiring $320,908 in disgorgement, $50,405 in prejudgment interest, and a $473,660 civil penalty.

narrative

The SEC charged Florida resident Charles Baugh with insider trading related to ADT, Inc. ahead of its partnership announcement with Google LLC. Baugh misappropriated material, nonpublic information from a family member employed by ADT to purchase securities for himself and a relative. This trading resulted in approximately $397,000 in total profits once the partnership was made public. To resolve the charges, Baugh consented to a final judgment without admitting or denying the allegations. The settlement includes a permanent injunction, $320,908 in disgorgement, $50,405 in prejudgment interest, and a $473,660 civil money penalty. The enforcement action was filed in the U.S. District Court for the Southern District of Florida.

Enriched metadata

Scheme
insider-trading (100%)
Court
Southern District of Florida
Case No.
9:24-cv-80919
Outcome
settled
Disgorgement
$320,908
Civil penalty
$473,660
Victim loss
$397,000
Entity
Charles Baugh
Ticker
ADT
CIK
0001703056
Classified insider-trading(confidence 100%). EDGAR detection: forms 4/3/5/144· recall 81% / precision 19%. detection rule →
Statutes
Section 10(b) of the Securities Exchange ActRule 10b-5
Parties
Securities and Exchange CommissionCharles Baugh
Keywords
baughsecuritiescharles baughsecurities exchangeadtsecexchange commissioncharlesexchangetrading securitiesmaterial nonpublicnonpublic informationagreement googleprejudgment interestcommission

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 4
  • $474K $473,660 $100K–$1M
  • $397K $397,000 $100K–$1M
  • $321K $320,908 $100K–$1M
  • $50K $50,405 $10K–$100K
Entities 9
  • company adt securities
  • company another relative to purchase adt securities
  • person charles baugh
  • scheme_term charles baugh with insider trading
  • agency sec’s complaint
  • agency sec’s investigation
  • agency sec’s litigation
  • agency Securities and Exchange Commission
  • agency the assistance of the financial industry regulatory authority
Triples 11
  • Securities and Exchange Commission Charged Charles Baugh with Insider Trading
  • Charles Baugh Misappropriated Material, Nonpublic Information about ADT’s Agreement with Google
  • Charles Baugh Purchased ADT Securities
  • Charles Baugh Persuaded Another Relative to Purchase ADT Securities
  • Baugh and His Relative Sold ADT Securities Resulting in Approximately $397,000 in Total Profits
  • SEC’s Complaint Charges Baugh with Violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 Thereunder
  • Baugh Agreed to Consent to the Entry of a Final Judgment Permanently Enjoining Him from Committing or Engaging in Specified Actions or Activities Relevant to Such Violations
  • Baugh Ordered to Pay Disgorgement of $320,908, Plus Prejudgment Interest Thereon of $50,405
  • SEC’s Litigation Will Be Led by Teresa Verges
  • SEC’s Investigation Was Supervised by Sean O’Neill and Glenn Gordon of the Miami Regional Office
  • SEC Acknowledges the Assistance of the Financial Industry Regulatory Authority
PDF (from attached: complaint)
(“Baugh” or “Defendant”) in the securities of ADT, Inc. (“ADT”), a publicly traded company · Source
Text layers
Extracted body text (1,980c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26062 / July 30, 2024 Securities and Exchange Commission v. Charles Baugh, No. 9:24-cv-80919 (S.D. Fla. filed July 30, 2024) SEC Charges Florida Resident with Insider Trading The Securities and Exchange Commission today charged Palm Beach County resident Charles Baugh with violations of the anti-fraud provisions of the federal securities laws in connection with his trading in the securities of ADT, Inc. ahead of an announcement that the company had agreed to enter into a partnership with Google LLC. According to the SEC’s complaint, in July 2020, Baugh misappropriated material, nonpublic information about ADT’s agreement with Google from a family member who was employed by ADT. As alleged, based on this material, nonpublic information, Baugh then purchased ADT securities and also persuaded another relative to purchase ADT securities. Once ADT’s agreement with Google was made public, Baugh and his relative sold their ADT securities resulting in approximately $397,000 in total profits. The SEC’s complaint, filed in the U.S. District Court for the Southern District of Florida charges Baugh with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and seeks injunctive relief, disgorgement with prejudgment interest, and a civil penalty. Without admitting or denying the allegations, Baugh has agreed to consent to the entry of a final judgment, subject to court approval, permanently enjoining him from committing or engaging in specified actions or activities relevant to such violations; ordering him to pay disgorgement of $320,908, plus prejudgment interest thereon of $50,405; and imposing a civil money penalty of $473,660. The SEC’s investigation was supervised by Sean O’Neill and Glenn Gordon of the Miami Regional Office. The SEC’s litigation will be led by Teresa Verges. The SEC acknowledges the assistance of the Financial Industry Regulatory Authority.
OCR text (1,980c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26062 / July 30, 2024 Securities and Exchange Commission v. Charles Baugh, No. 9:24-cv-80919 (S.D. Fla. filed July 30, 2024) SEC Charges Florida Resident with Insider Trading The Securities and Exchange Commission today charged Palm Beach County resident Charles Baugh with violations of the anti-fraud provisions of the federal securities laws in connection with his trading in the securities of ADT, Inc. ahead of an announcement that the company had agreed to enter into a partnership with Google LLC. According to the SEC’s complaint, in July 2020, Baugh misappropriated material, nonpublic information about ADT’s agreement with Google from a family member who was employed by ADT. As alleged, based on this material, nonpublic information, Baugh then purchased ADT securities and also persuaded another relative to purchase ADT securities. Once ADT’s agreement with Google was made public, Baugh and his relative sold their ADT securities resulting in approximately $397,000 in total profits. The SEC’s complaint, filed in the U.S. District Court for the Southern District of Florida charges Baugh with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and seeks injunctive relief, disgorgement with prejudgment interest, and a civil penalty. Without admitting or denying the allegations, Baugh has agreed to consent to the entry of a final judgment, subject to court approval, permanently enjoining him from committing or engaging in specified actions or activities relevant to such violations; ordering him to pay disgorgement of $320,908, plus prejudgment interest thereon of $50,405; and imposing a civil money penalty of $473,660. The SEC’s investigation was supervised by Sean O’Neill and Glenn Gordon of the Miami Regional Office. The SEC’s litigation will be led by Teresa Verges. The SEC acknowledges the assistance of the Financial Industry Regulatory Authority.

Related documents (1)