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

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...