Houston Man Makes $1.76M from Listening in on Wife’s Remote Work Meetings, Pleads Guilty to Insider Trading

A man in the United States has been accused of insider trading after listening in on his wife’s remote work meetings, in a case that may have negative implications for the work-from-home movement.

Remote Work Insider Trading

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A Texas resident has pleaded guilty to insider trading charges after making $1.76 million in illegal profits by eavesdropping on his wife’s phone calls while she worked from home. 

Houston Man Charged

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Tyler Loudon, a 42-year-old Houstonian, was charged with securities fraud related to insider trading by the Securities and Exchange Commission (SEC) after profiting from company information. 

“Taking Advantage of Remote Work”

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The SEC filed a civil complaint against Loudon, claiming that he “took advantage of his remote working conditions and his wife’s trust to profit from information he knew was confidential,” in an official statement.

BP Executive

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Loudon’s wife, Emily Kraus, was BP’s mergers and acquisitions manager. She was conducting important internal discussions in their shared home while she oversaw the potential takeover of U.S truckstop operator TravelCenters of America.


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Her husband listened in on her conversations and used confidential information from these calls to purchase more than 46,000 shares in the business weeks before the deal had become public knowledge.

Offloading Assets

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According to the U.S. attorney’s office, Loudon emptied his brokerage and Roth IRA accounts and sold off all other equities to acquire the shares. 

Major Value Increase

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After the deal was announced on February 16, shares in TravelCenters of America shot up by 70%. Immediately after the announcement, Loudon sold his shares for a reported profit of $1.76 million. 

No More WFH

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The case has come about at a time when many companies are already trying to push back on the remote work movement, which saw millions of workers around the world working from home during the COVID-19 pandemic. 

Corporate Pushback

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Major corporations such as Google and Disney and banks including Goldman Sachs have made moves to call workers back to the office, with Goldman Sachs establishing full-time office hour mandates to all employees as early as 2022.

Full Return to Office in 2024

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A report from Resume Builder in August 2023 suggested that up to 90% of U.S. companies expected a full return to office work by the end of 2024, with return-to-office policies already in the works.

Penalties for Non-compliance

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Close to 30% of the 1000 company leaders surveyed said that actions would be taken to penalize employees who refuse to come back to the office, including the threat of firing.

Perceived Benefits

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Recently, a large-scale academic review from the UK was released, which consolidated almost 2000 research papers on post-pandemic work environments, revealing a number of benefits for home-based workers.

Health and Productivity

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These included lower blood pressure, lowered stress levels, healthier eating, and higher productivity, including the likelihood of working longer hours and taking on extra work during weekends and holidays.

Argument for Office Work

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Some suspect that Loudon’s case will be used to bolster arguments against remote work, as corporations are likely to favor security and confidentiality over the purported benefits of working from home for employees. 

Not the First Time

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The SEC has confirmed that this is not the first case they have handled where a partner has committed fraud via inside trading after overhearing confidential information from a spouse who was working from home. 

Up to 5 Years in Prison

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Sentencing will take place on May 17, with Loudon facing a possible sentence of 5 years in federal prison or a $250,000 fine, along with forfeiture of profits made from the insider trading. 

Outside the Marriage Pact

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Loudon’s actions were allegedly carried out without the knowledge of his wife, who admitted to discussing some details of the merger with him.

However, she believed they were “normal” conversations for a married couple to have. 

Wife Fired in the Aftermath

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Though no evidence was found of her collusion with her husband, BP “nonetheless terminated her employment,” and she has now filed for divorce.

Doing It for Her

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The accused reportedly told his wife that he had bought the shares “to make enough money so that she did not have to work long hours anymore,” according to the SEC.

“A Terrible Mistake”

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“Mr. Loudon made a terrible mistake in judgment for which he has taken full responsibility,” said Peter Zeidenberg, Loudon’s lawyer on the case.

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The post Houston Man Makes $1.76M from Listening in on Wife’s Remote Work Meetings, Pleads Guilty to Insider Trading first appeared on From Frugal to Free.

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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.

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