Sunday, 28 August 2016
Last updated 1 day ago
Apr 11 2013 | 12:10pm ET
A jeweler and diamond dealer was the recipient of insider information about Herbalife and Skechers, provided by a former KPMG partner.
Bryan Shaw said he was the beneficiary of the tips given by Scott London, who was fired by KPMG last week over the disclosures. KPMG then resigned as auditor to the two companies, a further headache for Herbalife, which Pershing Square Capital Management's William Ackman has accused of running a pyramid scheme.
Shaw had not been previously identified. But yesterday his lawyer issued a statement, in which Shaw admitted he "received non-public information from Scott London about a number of companies and then profited substantially from stock trades based upon that information." Shaw said he traded on the tips from 2010 until last year.
"I cannot begin to apologize for my incredibly stupid actions," Shaw added. "There is no excuse for my wrongful conduct."
"Over the past several months, I have fully cooperated with the FBI, the SEC and the U.S. Department of Justice in their ongoing investigation of this matter," Shaw continued. "I expect that my actions will result in significant civil and criminal consequences, but I realize that this is the painful price I will pay for my transgressions."
Shaw and London met at a golf club.