US man accused of making $1.8m from listening in on wife’s remote work calls

US regulators have alleged that a man made $1.8m (£1.4m) through insider trading, capitalizing on confidential information overheard during his wife's remote call. This case raises concerns about the risks associated with remote work.

The Securities and Exchange Commission (SEC) has charged Tyler Loudon with insider trading, asserting that he exploited his remote work setup to gain from private information regarding BP's acquisition plans. Loudon, based in Houston, Texas, purportedly eavesdropped on multiple remote calls held by his wife, a BP mergers and acquisitions manager working on the deal from a home office nearby.

According to the SEC, Loudon engaged in extensive purchasing of over 46,000 shares in the target company, TravelCentres, without his wife's knowledge, just prior to the deal's public announcement on February 16, 2023. Following the announcement, TravelCentres' stock surged by nearly 71%, allowing Loudon to sell his shares for a $1.8m profit.

Loudon later admitted his actions to his wife, citing his desire to alleviate her workload. She reported the incident to her superiors at BP, leading to her dismissal despite no evidence of her involvement in leaking information to Loudon. Subsequently, she filed for divorce and left their home.

Eric Werner, the regional director of the SEC’s Fort Worth office, emphasized that Loudon abused his remote work setup and his wife's trust for personal gain. This case may contribute to arguments advocating for a return to office work, citing concerns over security and confidentiality.

Loudon has not contested the SEC's allegations and has agreed to a partial judgment, pending court approval. The judgment includes restrictions on his future corporate roles, repayment of the profits with interest, and additional fines. He also faces criminal charges from the US attorney’s office for the southern district of Texas.

The SEC filing reveals that Loudon, in his early 40s, works for an undisclosed publicly listed company in a sector not supervised by the regulator.