Insider Trading Case: Crores of rupees can be earned just by listening to the phone. This seems like an impossible thing. But, it is absolutely true. In fact, a man living in Texas state of America has earned 20 lakh dollars (about Rs 16.57 crore) just by listening to his wife's phone secretly. This incident of misuse of corporate communication has been caught by America's Securities and Exchange Commission (SEC).
Buy shares after getting information about big deal
SEC said that the wife of the accused worked in a leading British oil company BP (British Petroleum). She used to discuss a possible deal with her partner on the phone while working from home. Her husband Tyler Loudon used to hear this conversation. He knew that BP was soon going to buy Travel Centers of America Inc. Therefore he has started buying shares of the company. A few days later, BP announced the purchase of travel centers at a 74 percent premium. Due to this he got a profit of about 17.6 lakh dollars.
Wife revealed, took divorce
However, this wealth brought ruin for him. When the wife became suspicious, the husband spilled the beans about it. After knowing this the wife left the house and also took divorce. The wife also gave this information to BP. The company fired him from the job. According to the SEC, the company had no evidence that she knowingly gave this information to her husband. Later, Loudon returned all the money as per the agreement and also paid the fine. According to the information given by SEC, Loudon used to sit close to his wife even during the trip to Rome. He tried to gather as much information as possible about this deal.
BP gets big network in America through deal
BP had bought Travel Centers for $1.3 billion. With this deal, it has got many gas station networks in America. Travel Centers has gas stations at 281 locations in 44 states. SEC had brought many similar cases to light earlier also. This problem of insider trading has increased further after Covid-19.
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