(RightWing.org) – The recent pandemic left an indelible mark on many Americans, from children who missed months of in-person learning to workers who lost earnings or their jobs. However, one man found a way to exploit the situation for financial gain at the expense of his marriage and possibly his freedom.
On February 22, the US Securities and Exchange Commission (SEC) issued a press release announcing that the agency filed charges related to insider trading against 42-year-old Tyler Loudon in the US District Court for the Southern District of Texas. The seven-page civil complaint alleged the defendant obtained information from his wife regarding the upcoming acquisition of TravelCenters of America by BP p.l.c., a British multinational oil and gas company.
On February 16, 2023, TravelCenters announced the agreement with BP. Loudon allegedly “misappropriated” non-public information about the purchase from his wife, an acquisitions and merger manager for BP. The couple were working from home during the lockdown, and he reportedly overheard her work-related video conferences and conversations. He also overheard her discussing the upcoming purchase at an Airbnb in Rome during a December 2022 trip.
The complaint explained that Loudon purchased 46,450 shares of TravelCenters stock in a breach of “confidence to his wife” and “his duty of trust.” The full-service truck stop’s stock increased by 70.8% after it announced the purchase agreement. Loudon “immediately” sold all his stock, earning nearly $1.8 million “in illicit trading profits.”
The SEC filed an unopposed motion to enter a bifurcated judgment order, a consent executed by Loudon, and a proposed judgment order. Loudon agreed to a permanent injunction barring him from violating relevant portions of the Securities Exchange Act of 1938 [15 USC ยง 78j(b)]. He also agreed to “pay disgorgement of ill-gotten gains,” interest on those earnings, and a civil fine.
Loudon also faces criminal charges. Prosecutors recently announced that US District Judge Sim Lake accepted the plea deal terms. He faces up to five years imprisonment and a $250,000 fine at his May 17 sentencing hearing.
BBC News reported that officials cleared Loudon’s wife of wrongdoing after interviewing her and reviewing the emails and instant messages. Court documents confirmed she moved out of the couple’s home, ceased all contact with him, and filed for a divorce.
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