LOS ANGELES (CBSLA.com) — A former senior partner with the KPMG accounting firm in Los Angeles was charged Thursday with insider trading.
KNX 1070’s Charles Feldman reports Scott London of Agoura Hills was allegedly caught accepting a bribe from undercover federal investigators.
London, 50, was charged Thursday with one count of conspiracy to commit securities fraud in the criminal complaint.
He was fired from KPMG — where he worked for nearly 30 years — after he recently informed the firm that he was under investigation by the Securities Exchange Commission (SEC) and criminal authorities for insider trading in the securities of several KPMG clients.
The allegations surfaced in the wake of an FBI sting operation in which he allegedly provided confidential information on Herbalife and Skechers to friend Bryan Shaw over the period of several years.
Shaw then used information provided by London to make trades on Wall Street that netted more than $1 million, according to officials.
KPMG removed itself as auditors for both firms after London was fired, which lead to a temporary halt in trading of Herbalife and Skechers USA shares.
In addition to the bags of cash and the Rolex watch valued at $12,000, Shaw gave London several pieces of expensive jewelry for his wife and routinely covered the costs of dinners and concerts the two men shared along with their families, according to the SEC’s complaint.
Attorney Harland Braun said London, who is on the Board of L.A. Chamber of Commerce and the L.A. Sports Commission, has already confessed to the charges.
“He’s given a complete statement to the government, both the SEC, the FBI and the Justice Department for three hours, and answered all their questions, and basically admitted what he did,” Braun said.
The SEC’s complaint against both London and Shaw seeks a final judgment permanently ordering them to repay ill-gotten gains plus interest and penalties.
London is due in court later Thursday afternoon.
(©2013 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)