The U.S. Securities and Exchange Commission filed federal insider trading charges Thursday accusing Tyler Loudon of Houston of using information he obtained from his wife to illegally profit from British-based oil conglomerate BP’s $1.3 billion acquisition of Ohio-based TravelCenters of America one year ago.
The seven-page complaint filed by the Fort Worth Regional Office of the SEC accuses Loudon, who is 41 and has an MBA from Pepperdine University, of learning about the February 2023 transaction from his wife, who worked in the mergers and acquisitions division at BP.
“In a breach of his duty and confidence to his wife, Loudon misused the information to purchase 46,450 shares of TA stock,” the SEC states in its complaint filed in the Southern District of Texas. “After the announcement, TA’s stock jumped 70.8 percent. Loudon immediately sold all of his TA stock, generating more than $1.76 million in illicit trading profits.”
The SEC claims that Loudon and his wife both worked at home “within 20 feet of each other” when Loudon overheard information about the proposed merger.
“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 SEC Regional Director Eric Werner. “The SEC remains committed to prosecuting such malfeasance.”
In an agreement with the SEC, Loudon consented to the entry of partial judgment against him, agreeing to pay disgorgement of the money he made and be subject to fines and penalties imposed at a later date by a federal judge.
Loudon’s wife was not charged with an offense.
The SEC, in a press release, said the investigation is ongoing and is being conducted by Julia Huseman and Jamie Haussecker of the SEC’s Fort Worth Regional Office, under the supervision of Jim Etri and B. David Fraser. The litigation will be led by Jason Rose and supervised by Keefe Bernstein.
Peter Zeidenberg of Arent Fox Schiff is representing Loudon.