Houston, Texas – A Houston man has pleaded guilty to insider trading after profiting $1.76 million illegally by eavesdropping on his wife’s work calls while they were working from home.
Tyler Loudon, 42, reportedly purchased thousands of shares in TravelCenters of America prior to its acquisition by British oil and gas company BP in February 2023. The Securities and Exchange Commission (SEC) alleged that Loudon, who was married to a BP executive, overheard confidential conversations about the planned acquisition. According to the SEC, the couple would often work in close proximity to each other at home, leading to Loudon overhearing his wife’s work-related discussions.
Loudon purchased 46,450 shares of TravelCenters stock without his wife’s knowledge before the acquisition was publicly announced. Following the announcement, the stock price surged by nearly 71%, allowing Loudon to sell his shares at a significant profit, as per the SEC.
The SEC accused Loudon of taking advantage of his remote working conditions and his wife’s trust to engage in insider trading. When BP began investigating individuals with prior knowledge of the acquisition, Loudon confessed to his wife about his actions, stating that he did it to prevent her from working long hours.
Subsequently, Loudon’s wife informed her superiors at BP about her husband’s confession, leading to her termination despite no evidence of wrongdoing on her part. She later moved out of their shared home and initiated divorce proceedings, disregarding a written apology from Loudon for violating her trust.
Loudon did not contest the allegations and has consented to a partial judgment that would prevent him from assuming certain senior corporate positions and necessitate him to pay a penalty. The case serves as a reminder of the legal and ethical implications of insider trading in the financial markets.