Honey, I Insider-Traded Your Merger – Bloomberg

One week later, on April 3, 2023, Loudon confessed to his wife that he had traded in TA prior to the acquisition announcement. Loudon did not tell her the number of shares he purchased or the profits he realized from their sale. Loudon told his wife that he had bought the TA shares because he wanted to make enough money so that she did not have to work long hours anymore.

“I was doing it for you!” Bad!

Stunned by this revelation, Loudon’s wife reported the trading to her supervisor at BP. In turn, BP placed her on administrative leave. BP reviewed Loudon’s wife’s emails and texts, finding no evidence that she knowingly leaked the acquisition to Loudon or otherwise knew of her husband’s trading. BP nonetheless terminated her employment.

Well, so, she’s not working long hours anymore.

***

I think that’s the worst insider trading case I’ve ever read? Between her prompt reporting to BP, their review of her texts and emails, and the immediate divorce, it seems pretty clear she wasn’t in on the insider trading. Still, terrible.

Source: Honey, I Insider-Traded Your Merger – Bloomberg