A former BP executive's husband has pleaded guilty to securities fraud after allegedly eavesdropping on his wife's work conversations, federal officials have revealed. Tyler Loudon, 42, of Houston, reportedly made $1.7 million in illegal profits through the purchase and sale of stock shares, as per a news release from the U.S. Attorney's Office of the Southern District of Texas.
Loudon's wife, an associate manager in mergers and acquisitions at BP, was involved in the company's acquisition deal with TravelCenters of America Inc., a truck stop and travel center company based in Ohio, according to the U.S. Securities and Exchange Commission (SEC). The SEC claims that Loudon overheard confidential work-related discussions about the merger while his wife was working remotely.
Allegedly without his wife's knowledge, Loudon bought over 46,000 shares of TravelCenters stock before the merger was publicly announced in February 2023. Following the announcement, TravelCenters stock surged by nearly 71%, allowing Loudon to sell all his shares for a profit of $1.76 million, the SEC stated.
Eric Werner, the regional director of the SEC’s Fort Worth regional office, remarked, “We allege that Mr. Loudon exploited his remote working situation and his wife's trust to profit from confidential information. The SEC is dedicated to prosecuting such misconduct.”
As part of his plea agreement, Loudon has agreed to forfeit the ill-gotten gains. U.S. District Judge Sim Lake accepted Loudon's guilty plea and scheduled his sentencing for May 17. Loudon could face a maximum of five years in federal prison and a potential fine of up to $250,000, according to the U.S. Attorney's Office.
