Current:Home > StocksTexas man made $1.76 million from insider trading by eavesdropping on wife's business calls, Justice Department says-InfoLens
Texas man made $1.76 million from insider trading by eavesdropping on wife's business calls, Justice Department says
View Date:2024-12-23 10:32:27
A man from Houston overheard his work-from-home spouse talking business, and used that information to make over $1.7 million in an insider trading scheme, federal authorities said.
Tyler Loudon, 42, pleaded guilty Thursday to securities fraud for buying and selling stocks based on details gleaned from his wife's business conversations while both were working from home. He made $1.7 million in profits from the deal, but has agreed to forfeit those gains, the Justice Department announced in a news release.
"Mr. Loudon made a serious error in judgment, which he deeply regrets and has taken full responsibility for," his attorney Peter Zeidenberg said in a statement to CBS News.
Things might have turned out differently had Loudon or his wife decided to work from, well, the office.
Loudon's wife worked as a mergers and acquisition manager at the London-based oil and gas conglomerate BP. So when Loudon overheard details of a BP plan to acquire TravelCenters, a truck stop and travel center company based in Ohio, he smelled profit. He bought more than 46,000 shares of the truck stop company before the merger was announced on Feb. 16, 2023, at which point the stock soared almost 71%, according to the Securities and Exchange Commission.
Loudon then allegedly sold the stock immediately for a gain of $1.76 million. His spouse was unaware of his activity, according to the U.S. Attorney's Office for the Southern District of Texas.
Loudon will be sentenced on May 17, when he faces up to five years in federal prison and a possible fine of up to $250,000, according to the U.S. Attorney's Office. He may also owe a fine in addition to other penalties in order to resolve a separate and still pending civil case brought by the SEC.
"We allege that Mr. Loudon took advantage of his remote working conditions and his wife's trust to profit from information he knew was confidential," said Eric Werner, regional director of the SEC's Fort Worth regional office. "The SEC remains committed to prosecuting such malfeasance."
- In:
- SEC
- Fraud
- Texas
veryGood! (98643)
Related
- Are Ciara Ready and Russell Wilson Ready For Another Baby? She Says…
- Chaos erupts in New York City after promise of free PlayStations
- The Mississippi River's floodplain forests are dying. The race is on to bring them back.
- Niger coup leader gets support on the streets, with Russian flags waving, and from other post-coup regimes
- US wholesale inflation picks up slightly in sign that some price pressures remain elevated
- Fox News' Johnny Joey Jones reflects on 13th 'Alive Day' anniversary after losing his legs
- Opera singer David Daniels pleads guilty in sexual assault trial
- Thousands enroll in program to fight hepatitis C: This is a silent killer
- Former NFL coach Jack Del Rio charged with operating vehicle while intoxicated
- Abortion fight this fall drives early voter surge for Ohio special election next week
Ranking
- NFL playoff picture Week 10: Lions stay out in front of loaded NFC field
- Five Americans who have shined for other countries at 2023 World Cup
- Influencer to be charged after chaos erupts in New York City's Union Square
- Employee fired for allowing diesel fuel to leak into city water supply
- Judge moves to slash $38 million verdict in New Hampshire youth center abuse case
- USA vs. Sweden: Time, odds, how to watch and live stream 2023 World Cup Round of 16
- Syrian baby born under earthquake rubble turns 6 months, happily surrounded by her adopted family
- Check Out the Most Surprising Celeb Transformations of the Week
Recommendation
-
It's Red Cup Day at Starbucks: Here's how to get your holiday cup and cash in on deals
-
Judge partially blocks Texas abortion ban for medical emergencies, fatal diagnoses
-
Eagles reserve lineman Sills acquitted of rape, kidnapping charges
-
Simone Biles dazzles in her return following a two-year layoff to easily claim the U.S. Classic.
-
Women suing over Idaho’s abortion ban describe dangerous pregnancies, becoming ‘medical refugees’
-
2 police officers injured in traffic stop shooting; suspect fatally shot in Orlando
-
Build the Perfect Capsule Wardrobe With 83% Off Deals From J.Crew
-
Jeremy Allen White Kisses Ashley Moore Amid Addison Timlin Divorce