According to the SEC, Loudon allegedly took advantage of his wife’s position as an M&A manager & misused confidential information to make profit by insider trading.
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Mumbai: Listening to a wife’s office or personal calls can be a casual thing for many husbands but it has caused trouble to a man in U.S. as he is pleaded guilty to by SEC in insider trading. The U.S. Securities and Exchange Commission (SEC) filed charges against Tyler Loudon, the husband of a BP Plc manager, in insider trading about BP’s $1.3 billion acquisition of TravelCenters of America Inc.
According to the SEC, Loudon allegedly took advantage of his wife’s position as an M&A manager & misused confidential information to make profit by insider trading. He overheard his wife’s conversations about the TravelCenters deal while both of them were working from home & then Loudon purchased shares of TravelCenters stock before the merger was even publicly announced, Reports Economic Times.
“We allege that Mr. c took advantage of his remote working conditions and his wife’s trust to profit from information he knew was confidential,” said SEC.
How Loudon Did Insider Trading?
U.S. Securities and Exchange Commission, pleaded Loudon guilty of securities fraud for buying and selling stocks based on details overheard from his wife’s business conversations.
He purchased over 46000 shares of the truck stop company after overhearing wife’s conversation and before the actual merger announcement, it helped him to earn a profit of Rs.14 Cr which was an actual increase of 71% in the stock’s value.
As the merger was announced and stock value was increased, Loudon sold the stock immediately, and earned $1.76 million or Rs 14 crore. His wife was completely unaware of his activities, as confirmed by the U.S. Attorney’s Office for the Southern District of Texas.
Possible Punishment To Loudon
Loudon can face up to five years in federal prison and a fine of up to $250,000. The U.S. The Attorney’s Office for the Southern District of Texas has also announced criminal charges against Loudon.