US man eavesdropping on wife’s work gets insider trading charge

His wife, then a BP mergers and acquisitions manager who was working on the deal, was unaware of his trading, the regulator said.

According to lawsuits from the SEC and US prosecutors in Texas, Tyler got the idea to buy TravelCenters after learning of the potential deal from his wife, who was working on the deal in a home office.

When he ultimately confessed to her, she moved out of the house and later filed for divorce. She reported his trades to BP, who then fired her despite finding no evidence that she knowingly leaked the deal, according to the SEC.

As part of his settlement, Loudon agreed to give up the money he made on the transactions and pay a fine. Loudon’s lawyer, Peter Zeidenberg, didn’t immediately reply to a request for comment. BP declined to comment.

The deal to buy TravelCenters of America Inc for about US$1.3 billion gave the British oil major access to a network of US fuel stations. At the time of the transaction, TravelCenters had a network of 281 locations in 44 states.

Since the work-from-home era began at the start of the Covid-19 pandemic, the SEC has brought multiple insider-trading cases involving information overheard or seen while working from home with a significant other.

According to the SEC, Loudon’s eavesdropping extended abroad. While travelling in Rome, the SEC said Loudon sat nearby his wife while she worked on the TravelCenters deal from a small rented flat.