The former KPMG partner who has admitted to passing tips about several companies to a friend was arraigned on fraud charges this week—with a not-guilty plea entered on his behalf.
Scott London's procedural profession of innocence won't last long: He will plead guilty once his case is transferred to U.S. District Judge George Wu, who is overseeing the case against the beneficiary of his tips, Bryan Shaw. Shaw is also to plead guilty.
London faces up to 20 years in prison on the securities fraud count. He is expected change his plea within days.
At the arraignment, London spoke with reporters, telling them he was "shocked" that Shaw had made $1 million trading on tips about Herbalife and Skechers USA, while he himself had received about $70,000 in kickbacks. And he discussed his future plans.
"I won't be practicing before the SEC, but it'll be something," he said. "I'll wait tables."