US man nets $2m illegally from wife's office calls during WFH
PTC News Desk: A man from Texas allegedly amassed close to $2 million through illicit trading based on confidential information gleaned from his wife's conversations with her colleagues at BP Plc, according to the US Securities and Exchange Commission (SEC). This case sheds light on the consequences of eavesdropping within couples while working remotely from home.
Tyler Loudon, as per the SEC's claims on Thursday, engaged in purchasing shares of TravelCenters of America Inc. over several months. He allegedly liquidated his brokerage and retirement accounts, and in February 2023, capitalised on insider information about BP's acquisition of TravelCenters of America, yielding a profit of $1.76 million. Notably, Loudon's wife, a BP mergers and acquisitions manager involved in the deal, remained unaware of his clandestine trading activities.
Loudon's scheme reportedly originated from overhearing discussions about the impending deal from his wife, who worked from a home office merely 20 feet away. Upon confessing his actions to his spouse, she promptly moved out and initiated divorce proceedings. Despite the lack of evidence implicating her in the leak of confidential information, BP terminated her employment, following her disclosure of Loudon's trades.
Under the terms of a settlement, Loudon agreed to relinquish his ill-gotten gains and pay a fine. His attorney, Peter Zeidenberg, declined to comment, while BP refrained from issuing a statement.
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The acquisition of TravelCenters of America Inc. by BP for approximately $1.3 billion allowed the British oil giant to gain access to a network of gas stations across the United States. At the time of the acquisition, TravelCenters boasted a network of 281 locations across 44 states.
This incident underscores a series of insider trading cases brought forth by the SEC since the onset of the work-from-home era amid the Covid-19 pandemic. Loudon's eavesdropping activities extended beyond domestic boundaries, as the SEC alleges he monitored his wife's work conversations even while traveling in Rome, further highlighting the global reach and implications of such illicit behaviour.
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(Inputs from agencies)
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