Tuesday, 28 June 2016
Last updated 9 hours ago
Oct 1 2013 | 9:57am ET
The former KPMG partner who passed confidential tips about several companies the accounting firm audited has been barred from that industry.
The Securities and Exchange Commission said that Scott London accepted a ban on auditing public companies and on practicing as an accountant before the regulator. London pleaded guilty in July to giving confidential information about Herbalife, Skechers USA and other companies to a friend, Bryan Shaw.
Shaw, who gave London more than $70,000 in cash and gifts for the tips, earned about $1 million trading on them. He also pleaded guilty.
London, the former head of KPMG's Pacific Southwest audit practice, will be sentenced in December. He faces up to 20 years in prison.
London's actions forced KPMG to resign as the auditor of Herbalife and Skechers.