A former senior partner at KPMG LLP has been sentenced to 14 months in federal prison for giving insider information to a golfing buddy who used the tips to make more than $1.27 million in illegal stock trades.
Scott London, former chief of KPMG’s audit practice for the Pacific Southwest, who worked in Los Angeles, pleaded guilty on July 1 to a single felony count of insider-trading securities fraud. He admitted that he took $70,000 in cash, concert tickets and a $12,000 Rolex watch from his friend, Bryan Shaw, in exchange for confidential information about public companies including Herbalife Ltd. and Skechers USA Inc. KPMG fired London.
