In a stunning revelation of insider trading, Texas resident Tyler Loudon has made headlines after raking in nearly $2 million by illegally trading based on confidential information overheard from his wife’s office phone calls. The saga unfolded as his wife, employed as a mergers and acquisitions manager at BP Plc, was diligently working on overseeing BP’s acquisition of TravelCenters of America, as reported by Bloomberg and confirmed by the US Securities and Exchange Commission (SEC).
Loudon’s clandestine trading activities came to light when it was revealed that he had been purchasing shares in TravelCenters of America Inc. for months leading up to BP’s announcement of its acquisition, resulting in a staggering profit of $1.76 million. The SEC, in its investigation, found that Loudon’s wife was completely unaware of his illicit trading activities, which were conducted while she worked from their shared home office, merely six meters away.
According to authorities, Loudon stumbled upon the idea of investing in TravelCenters after overhearing discussions about the potential deal from his wife’s work-related phone conversations. Notably, his eavesdropping extended beyond their home setting, as he reportedly observed his wife’s work activities even while they were traveling in Rome, stationed nearby as she conducted business from a rented apartment.
The repercussions of Loudon’s actions were swift and severe. Upon confessing to his wife, she promptly moved out of their shared residence and initiated divorce proceedings. Additionally, she reported his insider trading to BP, leading to her dismissal from the company, despite no evidence suggesting her complicity in the leak of confidential information.
In a subsequent settlement, Loudon agreed to surrender the ill-gotten gains from his trades and pay a fine, as mandated by the SEC and US prosecutors in Texas. The BP Plc – TravelCenters of America Inc. deal, valued at $1.3 billion, granted BP access to a vast network of US gas stations, comprising 281 locations across 44 states at the time of the acquisition.
