A Texas man allegedly made $1.76 million from insider trading by eavesdropping on several of his wife's work-from-home calls about the merger, according to the Securities and Exchange Commission.
Tyler Loudon, of Houston, overheard his wife, a mergers and acquisitions director at BP, discussing the company's acquisition of TravelCenters of America Inc., the SEC said in a report. He bought 46,450 shares of the latter's stock before the announcement on February 16, 2023. New release. Loudoun's wife was unaware that her husband had purchased the shares.
Loudon, 42, sold his shares after the announcement, sending TravelCenters shares up nearly 71%, netting him a profit of $1.76 million.
“We allege that Mr. Loudon exploited his remote working conditions and his wife’s trust to profit from information he knew was confidential,” said Eric Werner, regional director of the SEC's Fort Worth office.
The SEC filed a complaint against Loudon in the U.S. District Court for the Southern District of Texas accusing him of “violating the anti-fraud provisions of the federal securities laws.”
Loudon did not deny the accusations against him and agreed to a partial sentence.
The U.S. Attorney's Office for the Southern District of Texas also announced criminal charges against Loudoun, according to A.J New release.
Loudon pleaded guilty to securities fraud and agreed to relinquish $1.76 million to authorities, according to the U.S. Attorney's Office.
He is scheduled to be sentenced on May 17, and faces up to five years in prison, as well as a maximum fine of $250,000.
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