The Securities and Exchange Commission (SEC) has 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.
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