Home Commodities BP Employee's Husband Pleads Guilty to Insider Trading After Listening to Settlement Calls

BP Employee's Husband Pleads Guilty to Insider Trading After Listening to Settlement Calls

by SuperiorInvest

Unlock Editor's Digest for free

The husband of a BP employee has pleaded guilty to insider trading for illegal stock purchases he made after overhearing his wife discussing a deal while working from home.

Tyler Loudon admitted to making more than $1.7 million in illegal profits by purchasing thousands of shares of TravelCenters of America before its $1.3 billion acquisition by BP in February 2023, the U.S. Attorney's office said in Houston.

Sentencing was set for May 17, when Loudon faces up to five years in prison and a fine of up to $250,000.

The U.S. Securities and Exchange Commission said in a parallel civil lawsuit that Loudon and his wife, a BP mergers and acquisitions manager, worked “within 20 feet of each other” at home and frequently witnessed and overheard conversations. of each one related to work.

Eric Werner, director of the SEC's Fort Worth office, said Loudon “took advantage of his remote work conditions and his wife's trust to exploit information he knew was confidential.”

BP declined to comment, while Loudon could not be reached for comment.

In its civil complaint, the SEC wrote that Loudon had purchased 46,450 shares of the Ohio-based gas station chain TravelCenters of America in the weeks before its acquisition by BP, which it financed by selling shares of other companies worth of more than 2 million dollars. .

He said TA's share price rose from $49.94 to $84.83 when the deal was made public on February 16, 2023, after which Loudon sold all of his holdings in TA for a profit of $1. 76 million dollars.

The SEC said Loudon's wife had worked on BP's acquisition of TA during 2022, even while the couple was vacationing in Rome in late December.

He said Loudon's wife acknowledged discussing the agreement with Loudon “during the normal course of marital communications” and that Loudon knew “or was very reckless in not knowing” that such information was not public and that he had a duty to keep it confidential. .

Loudon, the SEC said, did not initially tell his wife about his buying and selling of TA shares, but confessed to her in April 2023 after she told him that all BP employees who worked on the deal would be under scrutiny. .

“Stunned by this revelation,” the SEC said, Loudon's wife reported it to her supervisor at BP and was placed on administrative leave. BP, the SEC said, found no evidence that she knowingly leaked information to Loudon but still terminated her employment.

Loudon's wife moved out of their home, he said, and began divorce proceedings in June 2023.

The SEC described Loudon as currently employed by a publicly traded company. He asked the court to prohibit him from acting as an officer or director of any company listed in the United States, to recover with interest “all ill-gotten gains” from the alleged violations, and to impose civil penalties.

Source Link

Related Posts