A Houston man capitalized on information overheard from his spouse’s work conversations during their shared remote work arrangement, netting over $1.7 million in an insider trading scheme, federal authorities revealed.
Tyler Loudon, 42, admitted to securities fraud on Thursday for leveraging insights gleaned from his wife’s business discussions while they both worked from home. He amassed $1.7 million in profits from the illicit trades, but has agreed to surrender those gains, the Justice Department announced in a press release.
“Mr. Loudon made a serious error in judgment, which he deeply regrets and has taken full responsibility for,” stated his attorney Peter Zeidenberg in a comment to CBS News. The outcome might have diverged had Loudon or his spouse opted for office-based work.
Loudon’s wife served as a mergers and acquisition manager at the London-based oil and gas conglomerate BP. When Loudon caught wind of BP’s intention to acquire TravelCenters, an Ohio-based truck stop and travel center company, during a conversation, he saw an opportunity for profit. Prior to the merger’s public announcement on Feb. 16, 2023, he purchased over 46,000 shares of the truck stop company, leading to a nearly 71% surge in the stock’s value, as per the Securities and Exchange Commission.
Subsequently, Loudon allegedly promptly sold the stock, reaping a $1.76 million gain. His spouse remained unaware of his actions, according to the U.S. Attorney’s Office for the Southern District of Texas.
Loudon is set to be sentenced on May 17, facing a potential federal prison term of up to five years and a maximum fine of $250,000, according to the U.S. Attorney’s Office. He may also be subject to additional fines and penalties to settle a separate ongoing civil case initiated by the SEC.