HOUSTON — A Houston man pleaded guilty to securities fraud after he eavesdropped on his wife’s work calls, resulting in him making almost $2 million from insider trading.

What You Need To Know

  • A Houston man pleaded guilty to securities fraud after eavesdropping on his wife’s work calls, leading to nearly $2 million in profits

  • Tyler Loudon, 42, overheard his wife, a mergers and acquisitions manager for BP, discussing the company’s upcoming acquisition of travel center and truck stop company TravelCenters of America Inc. on several calls as she worked remotely

  • Ahead of the merger, Loudon bought 46,450 shares of TravelCenters’ stock and then sold them for a profit of $1.76 million, according to a release from the U.S. Securities and Exchange Commission (SEC). The SEC reports the company’s stock rose nearly 71% after the merger was announced on Feb. 16

  • The SEC believes that Loudon used his wife’s work from home conditions to his advantage. Loudon faces up to five years in federal prison and a fine of up to $250,000.

Tyler Loudon, 42, of Houston, overheard his wife, a mergers and acquisitions manager for BP, discussing the company’s upcoming acquisition of travel center and truck stop company TravelCenters of America Inc. on several calls as she worked from home.

Ahead of the merger, Loudon bought 46,450 shares of TravelCenters’ stock and then sold them for a profit of $1.76 million, according to a release from the U.S. Securities and Exchange Commission (SEC). SEC reports the company’s stock rose nearly 71% after the merger was announced on Feb. 16.

Loudon was charged with insider trading on Feb. 22. The SEC believes that Loudon used his wife’s work from home conditions to his advantage.

“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 Regional Office. “The SEC remains committed to prosecuting such malfeasance.”

According to a release from the U.S. Attorney’s Office, Loudon agreed to forfeit the $1.76 million as part of a plea agreement.

Loudon faces up to five years in federal prison and a fine of up to $250,000. He will be sentenced on May 17.