Jeweler Admits to $1.2M Inside Trading Scheme

     (CN) – A California jewelry store owner pleaded guilty to conspiring to commit securities fraud by paying a friend at KPMG to pass him inside tips that netted him more than $1.2 million.
     According to court documents, Bryan Shaw, the owner of a jewelry store in Encino, received the inside information from friend Scott London, a senior partner at KPMG’s Woodland Hills office.
     Prosecutors said London fed Shaw information about KPMG’s clients, including Herbalife, Skechers, Deckers, Pacific Capital and RSC Holdings.
     Shaw, 52, kicked back more than $60,000, jewelry, concert tickets and a $12,000 Rolex watch for the inside information, prosecutors said.     
     “These two men were close friends who shared dinners, concerts, sporting events and secret information that brought profits to each of them,” said U.S. Attorney Andre Birotte Jr. “London provided, and Shaw was all too happy to use, proprietary information that should have remained confidential. These men broke ethical rules and criminal laws for the sole purpose of lining their pockets with illegal profits.”
     Shaw pleaded guilty Monday to one count of conspiracy to commit securities fraud, a felony offense. He also agreed to disgorge more than $1.27 million in illegal stock trading profits.
     He’s expected to make his first appearance in Los Angeles Federal Court later this week.
     London, 50, was charged last month with one count of conspiracy to commit securities fraud and is scheduled for arraignment on May 17.

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