Woman fired after husband listened to her work calls, made $1.8M from insider trading
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A Texas man was accused of making nearly US$1.8 million from insider trading after listening in on his wife’s work calls while both were working from home.
Charges were laid by the Securities and Exchange Commission, alleging Tyler Loudon purchased 46,450 shares in a company that was later being sold to BP, a London-based oil and gas company.
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BP announced in February 2023 that it was purchasing TravelCenters of America Inc., a truck stop chain headquartered in Ohio.
According to the SEC, Loudon had eavesdropped on 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 later in the year.
“Without his wife’s knowledge, Loudon purchased 46,450 shares of TravelCenters stock before the merger was announced on February 16, 2023,” the SEC said in a news release.
“As a result of the announcement, TravelCenters stock rose nearly 71 per cent.”
After the stock rose, Loudon “immediately sold all of his TravelCenters shares,” making a cool $1.76 million in illegal profits.
“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 confessed to his wife, the BBC reported, claiming he wanted to make enough money so she no longer had to work long hours.
His wife was said to be “stunned” and reported the trading to her supervisor at BP.
Her emails and texts were reviewed by the company but despite finding no evidence that she leaked information to her husband or even knew he purchased the shares, “BP nonetheless terminated her employment,” according to the filing.
Loudon’s wife was a former merger and acquisitions manager with BP, according to the BBC.
She moved out and filed for divorce last June.
Loudon reportedly agreed to a partial judgment.
If the court approves it, he will be required to repay his profits with interest, along with a fine.
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