Tyler Loudon, a man from Houston, used information he overheard from his work-from-home spouse to engage in an insider trading scheme, making over $1.7 million in profits.
Loudon, 42, pleaded guilty to securities fraud for buying and selling stocks based on details gleaned from his wife’s business conversations while both were working remotely.
His wife, employed as a mergers and acquisition manager at the London-based oil and gas conglomerate BP, unknowingly provided details of a BP plan to acquire TravelCenters, a truck stop and travel center company based in Ohio.
Loudon capitalized on this information by purchasing over 46,000 shares of TravelCenters before the merger was announced on February 16, 2023. Following the announcement, TravelCenters’ stock soared almost 71%, allowing Loudon to sell the stock immediately for a gain of $1.76 million.
Texas Businessman (Credits: Above the Law)
Despite his wife’s unawareness of his activities, Loudon’s actions constitute insider trading, which is illegal. Loudon’s case highlights the risks and consequences of insider trading, particularly in the context of remote work, where sensitive information may be inadvertently disclosed during virtual meetings or conversations.
Loudon’s sentencing is scheduled for May 17, where he faces up to five years in federal prison and a possible fine of up to $250,000. Additionally, he may owe a fine in a separate civil case brought by the Securities and Exchange Commission (SEC).
Eric Werner, Regional Director of the SEC’s Fort Worth Regional Office, emphasized the SEC’s commitment to prosecuting insider trading cases, stating, “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.”
Loudon’s case serves as a reminder of the importance of maintaining ethical standards and respecting confidential information, even in remote work settings.
