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

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

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

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of