Sunday, 26 June 2016
Last updated 1 day ago
May 7 2013 | 11:12am ET
The jeweler who traded on confidential tips from a KPMG auditor will plead guilty in the case.
Bryan Shaw will plead guilty to one count of conspiracy to commit securities fraud later this week. He agreed to pay about $1.3 million in restitution and will continue to cooperate with the authorities. He faces up to five years in prison, but will likely receive less.
Shaw allegedly gave Scott London tens of thousands of dollars, as well as other inducements, for insider information about several companies audited by KPMG, including Herbalife and Skechers, the former the subject of a high-profile battle between hedge fund managers William Ackman and Carl Icahn. London, who was fired by KPMG last month, is set to plead guilty himself on May 17.
Shaw has been cooperating with authorities since earlier this year, participating in a sting operation and recording conversations with London.
"These two men were close friends who shared dinners, concerts, sporting events and secret information that brought profits to each of them," André Birotte, the U.S. Attorney in Los Angeles, said. "London provided, and Shaw was all too happy to use, proprietary information that should have remained confidential."