In a startling case of illegal trade of corporate communication, a man from the state of Texas in the United States made nearly $2 million by illegally trading his wife's conversations with her BP Plc colleagues when she was working from home, according to the US Securities and Exchange Commission in its latest case.
The husband in question, identified as certain Tyler Loudon, bought shared in TravelCenters of America Inc., the SEC said in its filing on Thursday (Feb 21).
He made a whopping $1.76 million in profits when BP announced it was buying truck stop and travel center company TravelCenters of America at a 74 per cent premium. Because he knew of this buyout since his wife, then a BP mergers and acquisitions manager was working on the deal and had discussed its details with her colleagues when she was working from home.
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.
Loudon later agreed to the settlement and gave up the money he made on the transactions and pay a fine.
According to the SEC, Loudon's eavesdropping also extended abroad.
While traveling in Rome, the SEC said that Loudon sat close to his wife while she worked on the TravelCenters deal from a small rented apartment.
The deal to buy TravelCenters of America Inc. for about $1.3 billion gave the British oil major access to a network of US gas 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 beginning of the Covid pandemic, the SEC has brought multiple insider-trading cases involving information overheard or seen while working from home with a significant other.
The US Securities and Exchange Commission alleged Tyler Loudon made $1.76m (£1.39m) in illegal profits.
His wife - a mergers and acquisitions manager at BP - worked on the oil giant's takeover of TravelCenters. The SEC said Mr Loudon purchased 46,450 shares of TravelCenters stock, without his wife's knowledge, before the deal was made public in February last year.
Following the announcement, TravelCenters share price rose nearly 71% and Mr Loudon allegedly immediately sold all of his newly-bought shares for a profit, the SEC said.
According to the filing, he said he bought the stock because "he wanted to make enough money so that she did not have to work long hours anymore".
His wife - who was "stunned by this revelation" - reported the trading to her supervisor at BP.
Her email and texts were reviewed by BP and it found no evidence that she knowingly leaked the information about the deal to her husband or knew he had bought the shares.
But "BP nonetheless terminated her employment," said the filing.
According to the regulator's complaint, Mr Loudon's wife moved out of the house and ceased all contact with him. In June, she initiated divorce proceedings.
The husband in question, identified as certain Tyler Loudon, bought shared in TravelCenters of America Inc., the SEC said in its filing on Thursday (Feb 21).
He made a whopping $1.76 million in profits when BP announced it was buying truck stop and travel center company TravelCenters of America at a 74 per cent premium. Because he knew of this buyout since his wife, then a BP mergers and acquisitions manager was working on the deal and had discussed its details with her colleagues when she was working from home.
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.
Loudon later agreed to the settlement and gave up the money he made on the transactions and pay a fine.
According to the SEC, Loudon's eavesdropping also extended abroad.
While traveling in Rome, the SEC said that Loudon sat close to his wife while she worked on the TravelCenters deal from a small rented apartment.
The deal to buy TravelCenters of America Inc. for about $1.3 billion gave the British oil major access to a network of US gas 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 beginning of the Covid pandemic, the SEC has brought multiple insider-trading cases involving information overheard or seen while working from home with a significant other.
The US Securities and Exchange Commission alleged Tyler Loudon made $1.76m (£1.39m) in illegal profits.
His wife - a mergers and acquisitions manager at BP - worked on the oil giant's takeover of TravelCenters. The SEC said Mr Loudon purchased 46,450 shares of TravelCenters stock, without his wife's knowledge, before the deal was made public in February last year.
Following the announcement, TravelCenters share price rose nearly 71% and Mr Loudon allegedly immediately sold all of his newly-bought shares for a profit, the SEC said.
According to the filing, he said he bought the stock because "he wanted to make enough money so that she did not have to work long hours anymore".
His wife - who was "stunned by this revelation" - reported the trading to her supervisor at BP.
Her email and texts were reviewed by BP and it found no evidence that she knowingly leaked the information about the deal to her husband or knew he had bought the shares.
But "BP nonetheless terminated her employment," said the filing.
According to the regulator's complaint, Mr Loudon's wife moved out of the house and ceased all contact with him. In June, she initiated divorce proceedings.
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