Herbalife Insider-Trader To Plead Guilty

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."


In Depth

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note