Spouse of Ex-BP Manager Admits To Insider Trading

Spouse of Ex-BP Manager Admits To Insider Trading

(RepublicanView.org) – The husband of a British Petroleum (BP) executive has admitted to making millions from insider trading after listening to his wife’s conversations on the phone. Tyler Loudon, from Houston, pleaded guilty to securities fraud on February 22, having made almost $1.8 million from eavesdropping. His wife, who has since filed for divorce, was fired when the scam came to light.

The couple took a trip to Rome together in December 2022 and stayed in an Airbnb accommodation. BP executive Emily Kraus was in charge of a TravelCenters of America acquisition at the time. A Securities and Exchange Commission (SEC) civil complaint states that the couple shared a small space, and Klaus reportedly admitted that her husband could overhear her and that she casually spoke about the acquisition with him.

Loudon proceeded to purchase 46,450 shares of TravelCenters but did not tell his wife. When the company announced its takeover by BP, its share value shot up 71%. Loudon quickly sold them and made a profit of $1.76 million. Media reports say Mr. Loudon told his wife he committed the fraud so that she would no longer need to work long hours at BP.

The convicted fraudster’s lawyer, Peter Zeidenberg, said his client had made a terrible mistake and has taken full responsibility. He faces a potential five-year jail term and a $250,000 fine. According to USA Today, Eric Werner, regional director of the SEC’s Fort Worth regional office, said Loudon “took advantage of his remote working conditions and his wife’s trust to profit from information he knew was confidential.”

When Emily Klaus discovered what her husband had done, she immediately informed her employers, but she was fired despite no findings of wrongdoing on her part. She left the home, ceased contact with her husband, and initiated divorce proceedings.

The SEC said the work-from-home trend that began during the 2020 health emergency has increased their investigations, and the number of cases related to spouses overhearing confidential information has risen.

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