US Man Makes $2 Million Overhearing Wife’s Office Phone Calls during WFH, Gets Divorced

Texas resident Tyler Loudon made almost $2 million by illegally trading by eavesdropping on his wife’s conversations. Loudon’s wife worked for BP Plc (formerly British Petroleum and BP Amoco) as mergers and acquisitions manager who was working on a deal which was overseeing BP’s acquisition of TravelCenters of America, according to a report by news outlet Bloomberg which cited the US Securities and Exchange Commission.

This is the latest case about couples eavesdropping while working from home.

Loudon for months purchased shares in TravelCenters of America Inc., and when BP announced it was buying TravelCenters of America at a 74% premium, Loudon liquidated his brokerage and retirement accounts around the same time, around February 2023. He made a $1.76 million profit.

The SEC said that his wife, who was working with BP Plc as its mergers and acquisitions manager, was unaware of his trading.

The SEC and US prosecutors in Texas said Tyler stumbled upon the idea of buying TravelCenters after learning of the potential deal from his wife. She was working on the deal in a home office 6 metres away.

He ultimately confessed to her after which she moved out of the house and filed for divorce. She also reported his trades to BP who ended up firing her despite not being able to find any evidence that indicated that she knowingly leaked the deal.

Loudon later agreed to give up the money he made on the transactions and pay a fine as part of the settlement.

The BP Plc – TravelCenters of America Inc deal which was valued at $1.3 billion gave the British oil major access to a network of US gas stations. At the time of the deal, the American company had a network of 281 locations in 44 states.

Since the beginning of the work from home era at the start of the Covid-19 pandemic, the US SEC has highlighted several cases of insider-trading cases involving information overheard or seen while working from home with a significant other. The SEC said that eavesdropping done by Loudon was not limited to their home, he overheard and saw what work his wife was doing as they were travelling Rome. The SEC said Loudon sat nearby his wife while she worked on the TravelCenters deal from a small rented apartment.