Texas Man Made Nearly $2 Million After Listening In On Wife's Conversations
For a Texas man named Tyler Loudon, the temptation was just too great. Loudon would spend his days listening in on his wife's juicy work conversations, and an idea formed inside of his head.
You see, Loudon's wife was the mergers and acquisitions manager for BP Plc, so she was constantly discussing deals over the phone.
Loudon's wife worked remotely, and her home office was just feet away from where Tyler Loudon worked.
Tyler Loudon could hear his wife's conversations, and they frequently involved insider information about potentially acquisition targets for BP Plc.
One conversation was too much for Loudon to ignore.
Based on what his wife was saying, BP plc was going to be purchasing TravelCenters of America, and there was going to be a big premium on the transaction.
Loudon loaded up on TravelCenters and ended up making $1.76 million when the deal was announced - unbeknownst to his wife.
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Loudon spilled the bills to his wife after the deal was announced.
I did it so that you can retire, he told her.
Loudon's wife was mortified, and the possibility of jail time likely flashed in her eyes.
Loudon's wife immediately notified her company, who promptly fired her, despite the fact that she had zero knowledge of what her husband was doing.
The SEC was notified, and they began an investigation, which was likely one of the easiest ones that they've ever undertaken.
All of the ill-gotten gains were returned to the SEC, and Tyler Loudon had to pay a fine on top of that.
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To make matters worse for Tyler Loudon, his wife (now ex-wife) immediately filed for divorce after learning of what he'd done.
She won't be with him when he goes to trial, as the U.S. Attorney's Office for the Southern District of Texas announced that they are filing criminal charges against Tyler Loudon as well.
Talk about a bad decision.
Source: Bloomberg.com - Husband Snooping on Wife's M&A Work Gets Insider Trading Charge
Filed under: General Knowledge
