Tyler Loudon, the husband of a former manager at British oil and gas giant BP, has pleaded guilty to insider trading after making a $1.8 million profit by secretly buying up shares in truck stop service TravelCenters of America. The case began as Loudon took advantage of sharing a workspace with his now estranged wife during the COVID-19 lockdowns. Loudon faces up to five years in jail and a $250,000 fine for his actions.

Loudon's wife, who worked in BP's mergers and acquisitions team, had been investigating the feasibility of acquiring TravelCenters of America starting in October 2021. Working from their Houston home, the couple was boxed together due to the lockdowns. Subsequently, Loudon overheard confidential information about BP's impending buyout of TravelCenters through his wife's workplace conversations.

Unbeknownst to his wife, Loudon began buying shares in TravelCenters, eventually accumulating 46,450 shares valued at $1.82 million by Feb. 15, 2023. Shortly after, BP announced the acquisition of TravelCenters for $1.8 billion, causing a significant jump in the company's share price. Loudon sold his stake for a profit of $1.76 million but continued to hide his actions from his wife.

Following Loudon's confession to his wife and subsequent administrative leave, she was fired by BP. Loudon's wife then cut off contact with him, initiated divorce proceedings, and a handwritten letter of apology from Loudon was submitted as evidence in court. The scandal has led Loudon to admit to insider trading and face potential jail time as the SEC remains committed to prosecuting such malfeasance.

Stay tuned for more updates on this developing story.