Details of the KPMG auditor insider trading case show money and gifts

Scott London the ex auditor of KPMG’s Los Angeles office has been charged in a federal complaint with conspiracy to commit securities fraud through insider trading and the details show a lot of money being made and paid for inside information. In a 24-page affidavit filed in court in the case against him and the complaint say that London called Bryan Shaw, a close friend, over several years and that used used London’s information to make profitable securities trades generating more than a million dollars. In some cases, it is alleged, London leaked information three days before press releases of KPMG clients were issued and tipped him off to mergers. Some of the highly sensitive clients whose data was shared before public release were Herbalife, Skechers and Deckers Outdoor Corporation. In exchange, Shaw gave London tens of thousands of dollars in cash in bags containing $100 bills wrapped in $10,000 bundles. He also gave him a Rolex Cosmograph worth $12,000 and other jewelry. Shaw has agreed to cooperate with federal authorities and recorded conversations with London. London faces up to five years in prison and a fine. Jeffrey Newman represents whistleblowers.