Jeweler Admits Trading On Herbalife Tips

May 21 2013 | 1:00pm ET

The jeweler who traded on confidential tips about several companies provided by a KPMG auditor has pleaded guilty.

Bryan Shaw, who has cooperated with the authorities, entered his plea on a single count of conspiracy in Los Angeles federal court yesterday. Shaw agreed to pay $1.3 million and will be sentenced on Sept. 16, when he faces up to five years in prison.

London is set to plead guilty himself on May 30.

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.

Shaw has been cooperating with authorities since earlier this year, participating in a sting operation and recording conversations with London.

The revelation that London had passed tips about Herbalife and Skechers to Shaw led KPMG to resign as their auditors in April. Skechers quickly hired a new auditor; Herbalife waited until today, appointing PricewaterhouseCoopers.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...