Feb. 23 (UPI) — The Securities and Exchange Commission on Thursday charged Tyler Loudon of Houston with insider trading that produced $1.76 million in illegal profits.
U.S. Attorney Alamdar S. Hamdani of the Southern District of Texas said in a statement that Loudon pleaded guilty to securities fraud.
Sentencing is set for May 17. Loudon agreed to forfeit all of the illegal profits. He faces up to five years in prison and a maximum fine of $250,000 at sentencing.
The SEC complaint alleges Loudon overheard his wife’s work-related conversations about London-based oil and gas company BP plans to acquire TravelCenters of America.
“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 a statement from Eric Werner, Regional Director of the SEC’s Fort Worth Regional Office. “The SEC remains committed to prosecuting such malfeasance.”
The SEC said without his wife’s knowledge Loudon bought 46,450 shares of TravelCenters stock prior to the merger being publicly announced Feb. 16, 2023.
When the stock rose 71%, the SEC said, Loudon allegedly immediately sold it.
Loudon has also consented to a partial judgment on the SEC charge, subject to court approval.
According to the SEC, without denying the allegations, Loudon has agreed to a judgment “permanently enjoining him from violating the antifraud provisions of the federal securities laws, imposing an officer and director bar, and ordering that he pay disgorgement with prejudgment interest and a civil penalty in amounts to be determined by the Court.”