A Texas man has pleaded guilty to securities fraud after eavesdropping on his wife’s work call.
According to theU.S. Department of Justice, 42-year-old Tyler Loudon made $1.7 million illegally by trading stocks based on insider information he gained from his wife's work-from-home conference call about BP's acquisition plans for a travel center company.
Although the DOJ does not identify Loudon's wife, it says she was an associate manager in mergers and acquisitions for the London-based oil and gas company.
During their investigation, the FBI, the Securities and Exchange Commission, and the Financial Industry Regulatory Authority learned that Loudon, without his wife's knowledge, used confidential information he overheard from the acquisition call to buy 46,450 shares on Dec. 2022 before the public disclosure.
When the merger went public in Feb. 2023 and the stock price rose almost 71%, Loudon then sold his shares for the large profit.
Loudon pleaded guilty on Thursday and agreed to give up the $1.7 million he made. He has a sentencing hearing on May 17 and faces up to five years in federal prison and a fine of up to $250,000.
According to CNN, his wife reported the trading to her supervisor as soon as she found out and the company proceeded to terminate her employment. She has since moved out of their home and filed for divorce.
