A Texas man who made $1.76 million in illegal profits after eavesdropping on his BP executive wife’s phone calls has been charged with insider trading. 

Tyler Loudon overheard his wife, Emily Kraus, a mergers and acquisitions manager at BP, conducting internal discussions about the oil conglomerate’s planned takeover of TravelCenters of America while she was working from home. 

Loudon proceeded to purchase 46,450 shares of TravelCenters stock, without his wife’s knowledge, before the deal was made public in February last year.

When BP announced it was buying TravelCenters of America at a 74 percent premium Loudon immediately sold all of his shares, making a $1.76 million profit, the Securities and Exchange Commission said on Thursday. 

When Kraus discovered his betrayal, she informed her bosses at BP who found she had not acted improperly but fired her anyway. She later filed for divorce.  

Tyler Loudon (right) made $1.76 million in illegal profits after eavesdropping on his BP executive wife’s (left) phone calls

Emily Kraus, a mergers and acquisitions manager at BP, was terminated from her job 

Loudon (left) has accepted the charges of insider trading and has agreed to pay a fine

‘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’ the SEC said in a criminal complaint. 

Loudon said he bought the stock, even liquidating his retirement accounts, because ‘he wanted to make enough money so that she did not have to work long hours anymore,’ according to the filing. 

Kraus claimed to have been ‘stunned’ by her husband’s revelation and immediately reported the trading to her supervisor at BP.

Her email and texts were reviewed by BP and it found no evidence that she knowingly leaked the information about the deal to her husband or knew he had bought the shares.

However, BP still decided to fire her.

Emily Kraus worked for BP in Houston, Texas before being fired after her husband committed insider trading 

The couple lived together in the suburbs of Houston, Texas before separating in 2023 

The now-former BP executive moved out of the couple’s home and filed for divorce in June.

Loudon did not deny the allegations and agreed to give up the money he made on the insider trading and pay a penalty. 

However, he still faces potential criminal charges and if convicted, could face a prison sentence. 

Since the work-from-home era began at the start of the Covid-19 pandemic, the SEC has brought multiple insider-trading cases after partners or spouses overheard confidential information while working from home offices. 

According to the SEC, Loudon’s eavesdropping extended abroad. While traveling in Rome, the SEC said Loudon sat nearby his wife while she worked on the TravelCenters deal from a small rented apartment. 

BP did not immediately respond to DailyMail.com’s request for comment.