SEC Bans Accountant for Insider Trading
LOS ANGELES (CN) - Securities regulators issued a ban against a former KPMG partner who pleaded guilty to inside-trading charges involving Herbalife, Skechers and Deckers Outdoor Corp.
Scott London, 50, admitted in July 2013 to taking cash bribes and gifts for passing along inside information. The Agoura Hills resident had been the former partner-in-charge of KPMG's Pacific Southwest audit practice.
In his plea, London admitted to giving his friend Bryan Shaw at least 14 tips about earnings announcements or acquisitions by KPMG clients.
Shaw allegedly made at least $1.2 million on the tips and in turn gave London at least $50,000 in cash that was usually delivered in bags outside of Shaw's jewelry store in Encino, Calif.
The SEC's complaint said London had been the lead partner on several KPMG audits including Herbalife and Skechers USA, and he was the firm's account executive for Deckers.
London also tipped Shaw on the impending mergers involving two former KPMG clients - RSC Holdings and Pacific Capital, according to the complaint.
Shaw pleaded guilty to conspiracy in May.