Inside Trading Buddies|Await Sentencing

LOS ANGELES (CN) - Former KPMG partner Scott London pleaded guilty Monday to securities fraud through inside trading, federal prosecutors said.

London, 50, of Agoura Hills, admitting taking cash bribes and gifts for passing along inside information, the U.S. Attorney's Office said.

London admitted he gave his friend Bryan Shaw at least 14 tips about earnings announcements or acquisitions by KPMG clients, prosecutors said in late May when they announced that London had agreed to plead guilty.

"Federal prosecutors and London's defense attorney have not agreed on the specific amount of money involved in this case - meaning the value of the bribes, the losses suffered by companies whose stock was illegally traded, and the profits realized by Bryan Shaw remain the subject of dispute between the parties," the U.S. attorney said in a statement Monday. "However, the government believes that Shaw realized profits of approximately $1.27 million after trading on the insider information provided by London."

Shaw pleaded guilty to conspiracy in May. He will be sentenced on Sept. 16.

London will be sentenced on Oct. 21.

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