SEC Charges Houston Man with Insider Trading in BP's TravelCenters Acquisition

The Securities and Exchange Commission (SEC) has formally charged Tyler Loudon, a resident of Houston, Texas, with insider trading related to the acquisition of TravelCenters of America Inc. by London-based oil and gas giant BP p.l.c. The charges allege that Loudon, the husband of a BP mergers and acquisitions manager involved in the deal, exploited nonpublic information to pocket $1.76 million in illegal profits.

According to the SEC's complaint filed in the U.S. District Court for the Southern District of Texas, Loudon accessed confidential details about the impending acquisition through his wife's work-related conversations. Working remotely, Loudon allegedly overheard discussions about the planned deal, allowing him to make informed decisions regarding TravelCenters stock. He purchased 46,450 shares of the company ahead of the official announcement on February 16, 2023.

Following the acquisition disclosure, TravelCenters stock witnessed a substantial surge, soaring nearly 71 percent. Seizing the opportunity, Loudon swiftly sold all his TravelCenters shares, reaping a significant profit of $1.76 million. The SEC claims that Loudon's actions constitute a clear violation of federal securities laws, specifically the antifraud provisions.

"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," stated Eric Werner, Regional Director of the SEC’s Fort Worth Regional Office. "The SEC remains committed to prosecuting such malfeasance."

In response to the charges, Loudon has not contested the SEC's claims. He has consented to a partial judgment, pending court approval, which includes a permanent injunction against violating antifraud provisions, an officer and director bar, and an obligation to pay disgorgement with prejudgment interest and a civil penalty – the amounts of which will be determined by the court.

Simultaneously, the U.S. Attorney's Office for the Southern District of Texas has announced criminal charges against Loudon, underscoring the severity of the alleged insider trading. The legal actions taken by both the SEC and the U.S. Attorney's Office signal a united front against individuals engaging in illicit activities that undermine the integrity of financial markets.

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