A Texas man has learned the hard way about the perils of eavesdropping and insider trading. Tyler Loudon gathered sensitive information from his wifes work conversations and made illegal profits by purchasing shares in a company about to be acquired by her employer.While, his scheme initially earned him a hefty $2 million profit, ultimately led to his wifes termination, their divorce, and legal consequences for himself.How did he earn $2 millionLoudons wife was a mergers and acquisitions manager for BP Plc, who unknowingly became the source of his illicit gains. As she worked remotely on a confidential deal involving the acquisition of TravelCenters of America, Loudon, stationed just six meters away in their home office, couldnt resist overhearing details.The insider information fueled his decision to purchase TravelCenters shares over several months. When the deal was announced it resulted in a significant price jump in the companys share, where Loudon cashed in, earning a huge sum.SEC reveals the illegal trading trickFollowing the suspicious incidents, the U.S. Securities and Exchange Commission (SEC) and Texas prosecutors uncovered his insider trading. They revealed his reliance on his wifes confidential work conversations. While she remained completely unaware of his activities, the revelation shattered their marriage, leading to divorce and her termination from BP despite no evidence of direct involvement.Facing the consequences of his actions, Loudon was forced to give up his ill-gotten gains and pay a fine as part of a settlement agreement.The SEC, concerned about the rise of insider trading cases stemming from work-from-home arrangements, urges individuals to remain vigilant and avoid compromising sensitive information, regardless of the perceived privacy of their workspace.
