Energy
Monday, February 26th, 2024 4:38 pm EDT
Key Points
- Tyler Loudon, husband of a former BP merger and acquisitions manager, pleaded guilty to securities fraud for insider trading based on information overheard from his wife’s work calls regarding the potential acquisition of TravelCenters of America, earning $1.76 million.
- Loudon faces a maximum possible sentence of five years in prison and a $250,000 fine and has agreed to forfeit the $1.76 million of illegal profits as part of his plea. Additionally, the Securities and Exchange Commission filed a civil complaint against Loudon related to the same conduct.
- Loudon learned of BP’s confidential plans to acquire TravelCenters in 2022 while working remotely in earshot of his wife, then secretly listened to her private work calls discussing the acquisition. Without informing his wife, he accumulated 46,450 shares of TravelCenters and sold all his positions in his brokerage account and Roth IRA, amounting to over $2 million, to fund the purchase. He later profited $1.76 million when TravelCenters announced the BP acquisition. Despite his actions, Loudon’s wife reported his insider trading to her BP supervisor, leading to her termination from the company and subsequent divorce filings.
Tyler Loudon, the husband of a former BP merger and acquisitions manager, has pleaded guilty to securities fraud related to insider trading by eavesdropping on his wife’s work calls while she was handling a potential acquisition of TravelCenters of America. Loudon, a resident of Houston, managed to earn $1.76 million through illicit trades based on nonpublic knowledge of the possible acquisition at his wife’s company. As part of his plea agreement, Loudon agreed to forfeit the $1.76 million of illegal profits and faces a maximum possible sentence of five years in prison and a $250,000 fine. Separately, the Securities and Exchange Commission (SEC) filed a civil complaint against Loudon, to which he did not contest. Authorities revealed that Loudon learned of BP’s confidential plans to acquire TravelCenters in 2022 while working remotely in earshot of his wife, a situation facilitated by pandemic-era work-from-home policies. During a trip to Rome, Loudon secretly listened to his wife’s private work calls discussing BP’s acquisition of TravelCenters. Subsequently, he accumulated 46,450 shares of TravelCenters without informing his wife, selling all his positions in brokerage accounts and Roth IRA to fund the purchase. When TravelCenters announced the acquisition by BP on February 16, 2023, triggering a 71% stock jump, Loudon sold all his shares, making a profit of $1.76 million. However, his insider trading came to light when a former BP employee, who had worked on the acquisition, complained to Loudon’s wife about disclosing personal details to comply with FINRA’s request. In March, Loudon admitted his illegal trades to his wife, stating he did so to alleviate her from working long hours. Subsequently, Loudon’s wife reported his insider trading to her BP supervisor, leading to her termination from the company. She filed for divorce from Loudon in June, as detailed in the SEC complaint. Loudon’s lawyer, Peter Zeidenberg, acknowledged his client’s mistake in judgment, emphasizing Loudon’s acceptance of full responsibility for his actions.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/25/bp-exec-husband-guilty-of-insider-trading-snooped-on-her-calls.html
