His wife later filed for divorce after she was fired from her job
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Husband Accused of Making $1.8 Million from Insider Trading by Eavesdropping on Wifeâs Work-from-Home Calls
A Texas man is facing charges after he allegedly used information overheard during his wife’s work calls to make $1.76 million on the stock market.
The Securities and Exchange Commission announced charges against Tyler Loudon on Thursday, alleging he purchased 46,450 shares in a company that was later being sold to BP.
BP announced in February 2023 that it was purchasing TravelCenters of America Inc., a truck stop chain that’s based in Ohio. The SEC alleges that Loudon had overheard several of his wife’s business calls while she was working from home, which tipped him off to the sale ahead of the company’s public announcement last year.
Loudon’s wife was a former merger and acquisitions manager with BP, according to Fortune.
“Loudon overheard several of his wife’s work-related conversations about the merger while she was working remotely,” the SEC said in a news release this week. “Without his wife’s knowledge, Loudon purchased 46,450 shares of TravelCenters stock before the merger was announced on February 16, 2023. As a result of the announcement, TravelCenters stock rose nearly 71 percent.”
Loudon “immediately sold all of his TravelCenters shares” after the stock rose, according to the SEC, profiting $1.76 million off the scheme.
“We allege that Mr. Loudon took advantage of his remote working conditions and his wife’s trust to profit from information he knew was confidential,” Eric Werner, the Regional Director of the SEC’s Fort Worth Regional Office, said in a statement. “The SEC remains committed to prosecuting such malfeasance.”
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Loudon reportedly confessed to his wife, according to The Guardian and BBC, telling her he wanted to make enough money so that his wife didn’t need to continue working long hours.
His wife was “stunned by this revelation,” according to BBC. She then reported her husband to her superiors at BP, but was fired soon after coming forward with the information about her husband’s trading, according to The Guardian.
The woman later filed for divorce from her husband, according to the outlets.
The SEC says that Loudon did not deny the allegations. He reportedly agreed to a partial judgment, pending a court’s approval. If approved, Loudon would need to repay his profits with interest, on top of a fine that will be determined by the court.
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