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

Q&A: Fund Administration Comes To The Cloud

Jul 14 2017 | 7:23pm ET

The fund administration sector has been steadily implementing new technology, such...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of