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The husband of a former BP executive is facing prison time and a divorce after admitting he profited from stock trades he made based on information he gleaned from his wife's calls while she was home from worked for the energy giant.
Tyler Loudon, 42, pleaded guilty in federal court in Houston to securities fraud and has agreed to surrender the $1.7 million in ill-gotten gains he made, the U.S. Attorney's Office for the Southern District of Texas said on Thursday with.
Authorities say his wife knew nothing about the deals.
“We allege that Mr. Loudon took advantage of his telework arrangements and his wife's trust to profit from information that he knew was confidential,” said Eric Werner, regional director of the SEC's Fort Worth Regional Office. “The SEC remains committed to prosecuting such misconduct.”
The husband of a former BP mergers and acquisitions executive has pleaded guilty to securities fraud after profiting from trades he made based on information he obtained by listening in on his wife's calls while they were remotely worked. (Portal/Luke MacGregor / Portal Photos)
Loudon's sentencing in the case is scheduled for May 17 and he faces up to five years in prison and a maximum fine of $250,000.
Also on Thursday, the U.S. Securities and Exchange Commission charged Loudon with insider trading in a separate civil case that he has agreed to settle.
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According to the SEC's complaint, Loudon's wife was working as a mergers and acquisitions manager at BP when she was hired to work on the international oil company's planned purchase of truck stop operator TravelCenters of America.
A line of cars wait for gas at the BP gas station at the corner of East Cervantes Street and North Ninth Avenue in Pensacola on Monday, May 10, 2021. (Portal / Portal Photos)
Authorities said Loudon purchased 46,450 TravelCenters shares over a 1.5-month period without his wife's knowledge, following several work discussions about the proposed $1.3 billion takeover of TravelCenters while they were working remotely had overheard.
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TravelCenters' stock price rose 71% after the acquisition was announced on Feb. 16, 2023, and Loudon quickly sold its shares, authorities said.
According to the SEC, Loudon stunned his wife by admitting that he bought the shares to make enough money so she could work shorter hours.
| ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| B.P | BP PLC | 35.38 | -0.11 | -0.31% |
The SEC said BP later placed Loudon's wife on leave and then fired her, although it found no evidence that she knowingly disclosed the acquisition or knew about her husband's dealings.
She moved out of the home she shared with Loudon and began divorce proceedings last June, the SEC added.
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When contacted by FOX Business for comment, a BP spokesman said the company had nothing to add to the information in the DOJ and SEC filings and does not typically comment on personnel matters.
Portal contributed to this report.