Several sources have identified an audit manager of accounting giant KPMG’s Los Angeles office as the executive at the center of an insider-trading investigation that involved shares of Herbalife Ltd. and Skechers USA Inc.
Scott London, partner-in-charge of KPMG’s audit practice in Southern California, oversaw audits of both Herbalife and Skechers, the sources said. He has worked with KPMG since 1984, according to his profile on Linkedin.com.
Officials with Skechers and Herbalife said KPMG resigned as the companies’ auditor after learning that a manager had provided non-public information about the companies to a third party, who then used the information in stock trades.
Skechers spokeswoman Jenn Clay said in an email that London was the person who handled the company’s audit. Sources familiar with the matter confirmed the audit official who was involved was London.