A Texas man allegedly made $1.76 million from insider trading by eavesdropping on several of his wife’s work-from-home calls about a merger, according to the Securities and Exchange Commission.
Tyler Loudon, of Houston, overheard his wife, a BP mergers and acquisitions manager, discuss the company’s acquisition of TravelCenters of America Inc. and bought 46,450 shares of the latter’s stocks ahead of the announcement on Feb. 16, 2023, the SEC said in a news release. Loudon’s wife wasn’t aware that her husband bought the stocks.
Loudon, 42, sold his shares following the announcement, which led to a nearly 71% rise in TravelCenters’ stock, making 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, regional director of the SEC’s Fort Worth office.
The SEC filed a complaint against Loudon in the U.S. District Court for the Southern District of Texas charging him with “violating the antifraud provisions of the federal securities laws.”
Loudon did not deny the allegations against him and agreed to the entry of a partial judgement.
The U.S. Attorney’s Office for the Southern District of Texas also announced criminal charges against Loudon, according to a news release.
Loudon pled guilty to securities fraud and agreed to forfeit the $1.76 million to authorities, according to the U.S. Attorney’s office.
He will be sentenced on May 17 and faces up to five years in federal prison, as well as a $250,000 maximum fine.
Source: | This article originally belongs to Nbcnews.com
