Ex-KPMG Partner Pleads Guilty To Insider-Trading

Jul 2 2013 | 2:25am ET

Scott London, the former KPMG partner who passed confidential information about several companies the accounting firm audited, has pleaded guilty to securities fraud.

London entered his plea yesterday in Los Angeles federal court. He faces up to 20 years in prison when he is sentenced on Oct. 21, although he is likely to receive a shorter sentence.

London was arrested in April and quickly admitted to passing tips about several KPMG-audited companies, including Herbalife and Skechers USA, to a friend, Bryan Shaw, at least 14 times. In exchange, Shaw, who earned more than $1 million trading on the tips, gave London tens of thousands of dollars in kickbacks.

Shaw, who cooperated with investigators in the probe, pleaded guilty in May.

“It was a bad, bad mistake,” London said after the hearing. “I have no one to blame. It’s just really difficult.”


In Depth

Firm Focus: Sustainable Insight Capital Bullish On ESG

Aug 12 2014 | 9:18am ET

Bruce Kahn spent over 15 years as a research scientist/consultant on environmental...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note