New York

In a startling case of illegal trade of corporate communication, a man from the state of Texas in the United States made nearly $2 million by illegally trading his wife's conversations with her colleagues at a British oil major when she was working from home, according to the US Securities and Exchange Commission in its latest case. 

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What did the husband do with the information?

The husband in question, identified as certain Tyler Loudon, bought shared in TravelCenters of America Inc., the SEC said in its filing on Thursday (Feb 21). 

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Loudon made a whopping $1.76 million in profits when British Petroleum announced it was buying truck stop and travel center company TravelCenters of America at a 74 per cent premium. Because he knew of this buyout since his wife, then a BP mergers and acquisitions manager was working on the deal and had discussed its details with her colleagues when she was working from home.

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When he ultimately confessed to her, she moved out of the house and later filed for divorce. She reported his trades to BP, who then fired her despite finding no evidence that she knowingly leaked the deal, according to the SEC.

Loudon later agreed to the settlement and gave up the money he made on the transactions and paid a fine. 

According to the SEC, Loudon's eavesdropping also extended abroad. 

While traveling in Rome, the SEC said that Loudon sat close to his wife while she worked on the TravelCenters deal from a small rented apartment.

BP-TravelCentres deal: What is it about? 

The deal to buy TravelCenters of America Inc. for about $1.3 billion gave the British oil major access to a network of US gas stations. At the time of the transaction, TravelCenters had a network of 281 locations in 44 states.

Since the work-from-home era began at the beginning of the Covid pandemic, the SEC has brought multiple insider-trading cases involving information overheard or seen while working from home with a significant other.

(With inputs from agencies)