KPMG Auditor Got Bags|Full of $100 Bills

LOS ANGELES (CN) – A former senior partner in KPMG faces up to 20 years in prison after agreeing to plead guilty to taking bribes to give tips to an inside-trading ring.
     Scott London, 50, of Agoura Hills, agreed to plead guilty to a one-count criminal information accusing him of securities fraud, the U.S. Attorney’s Office said.
     The man who bribed him said he gave London “bags containing $100 bills wrapped in $10,000 bundles,” a $12,000 Rolex watch and other stuff for the stock tips.
     “London provided confidential information about KPMG clients to Bryan Shaw, a close friend of his, over a period of several years,” the U.S. Attorney’s Office said in the statement.
     “Shaw then used this information to make highly profitable securities trades that Shaw has admitted earned him more than $1 million in illegal proceeds.”
     London was in charge of KPMG’s auditing in the Pacific Southwest. Shaw paid him with “cash bribes and luxury items,” prosecutors said in the statement.
     London admitted he gave Shaw inside information on at least 14 earnings announcements or acquisitions by KPMG clients.
     Shaw, in turn, “has admitted that he gave London tens of thousands of dollars in cash in exchange for the inside information about KPMG’s clients,” prosecutors said in the statement.
     “According to court documents, Shaw also said that he typically arranged to meet London on a side street near Shaw’s business so that he could give London bags containing $100 bills wrapped in $10,000 bundles. Shaw also said that he gave London a $12,000 Rolex Daytona Cosmograph watch, as well as jewelry and concert tickets.”
     Shaw pleaded guilty on May 20 to conspiracy. He will be sentenced on Sept. 16.
     London’s arraignment, scheduled for this Friday, is expected to be postponed, prosecutors said.

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