Texas Man Suspected of Earning $1.76M Through Insider Trading by Listening to Spouse’s Job Conversations

According to the Securities and Exchange Commission, a Texas man allegedly profited $1.76 million in insider trading by listening in on several of his wife’s work-from-home merger talks.

Tyler Loudon of Houston overheard his wife, a BP mergers and acquisitions manager, discussing the company’s acquisition of TravelCenters of America Inc., and purchased 46,450 shares of the latter’s stock before the announcement on February 16, 2023, according to the SEC. Loudon’s wife was unaware that her husband purchased the stocks.

Loudon, 42, sold his shares after the announcement, which resulted in a nearly 71% increase in TravelCenters stock, earning him a profit of $1.76 million.

“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,” said Eric Werner, SEC regional director in Fort Worth.

The SEC filed a case against Loudon in the United States District Court for the Southern District of Texas, accusing him of “violating the antifraud provisions of federal securities laws.”

Loudon did not refute the claims and agreed to a partial judgment.

According to a press statement, the United States Attorney’s Office for the Southern District of Texas has also filed criminal charges against Loudon.

According to the United States Attorney’s Office, Loudon pleaded guilty to securities fraud and agreed to forfeit $1.76 million to authorities.

He will be sentenced on May 17 and could face up to five years in federal prison and a maximum fine of $250,000.

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