Wednesday, 26 October 2016
Last updated 9 hours ago
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.