NEWS
The Securities and Exchange Commission (SEC) has filed charges against Kevin Crotty, a resident of the Chicago area, for insider trading related to an announcement made on Feb 16 2023, regarding BP’s acquisition of TravelCenters of America Inc.
This marks the second instance of insider trading charges brought by the SEC in connection with BP’s acquisition of TravelCenters of America. Previously, Tyler Loudon, the spouse of a BP executive, was charged with insider trading ahead of the acquisition.
According to the SEC’s allegations, Crotty obtained confidential information from a colleague at BP involved in the acquisition process. It is alleged that upon learning of the high probability of the deal’s closure, Crotty purchased 848.824 shares of TravelCenters of America stock on Feb. 15, 2023. The following day, the acquisition was announced, resulting in a 70.8% increase in TravelCenters of America’s share price and an unrealized gain of $30,667 for Crotty.
The complaint, filed in the U.S. District Court for the Northern District of Illinois, accuses Crotty of violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. Crotty has agreed to settle the charges brought by the SEC, pending approval from the court.
While not admitting to the allegations in the SEC’s complaint, Crotty has consented to a final judgment that would permanently enjoin him from future violations, impose a bar on serving as an officer or director, and require him to pay disgorgement of $30,667, prejudgment interest of $1,274.50, and a civil penalty of $30,667.
