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BUSINESS
April 11, 2013 | By Walter Hamilton and Andrea Chang
The KPMG insider trading scam was far more profitable than earlier known and went longer than thought. Scott London, the disgraced ex-auditor from KPMG's office in Los Angeles, has been charged in a federal complaint with one count of conspiracy to commit securities fraud through insider trading. “The public has every right to fully expect a level playing field in our financial markets," U.S. Atty. André Birotte Jr. said. “As alleged in the complaint, Mr. London chose to betray the trust placed in him as a financial auditor and to tip the trading scales for the benefit of insiders like himself.” Full coverage: KPMG auditor accused of insider trading The 24-page affidavit alleges that London provided confidential information about KPMG clients to Bryan Shaw, a close friend, over a period of several years and that Shaw used this information to make highly profitable securities trades that generated more than $1 million in illegal proceeds.
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BUSINESS
May 7, 2013 | By Stuart Pfeifer, Los Angeles Times
A San Fernando Valley jeweler agreed to plead guilty to a conspiracy charge and return nearly $1.3 million in stock-trading gains he made from allegedly illegal tips provided by a former partner at accounting giant KPMG. Bryan Shaw, 52, of Lake Sherwood admitted in a plea agreement that he conspired with KPMG's Scott London to trade in the stocks of the accounting firm's clients. The pair were longtime friends who enjoyed golfing together. In addition to forfeiting his ill-gotten gains, Shaw faces a maximum sentence of five years in federal prison and a fine, the Justice Department said.
BUSINESS
April 9, 2013 | By Andrew Tangel
KPMG, one of the country's biggest auditing firms, has fired a senior partner in its Los Angeles office for allegedly engaging in an insider-trading scheme. The partner passed confidential client information to someone who then traded stocks in several West Coast companies, KPMG said in a statement posted on its website. The partner, whom the firm did not identify, was in charge of KPMG's audit practice in the L.A. office. KPMG said it notified two of its clients it would have to withdraw audits performed for the companies, though it had no reason to believe the reports contained any financial misstatements.
BUSINESS
July 1, 2013 | By Stuart Pfeifer
Moments after pleading guilty to an insider-trading charge, former KPMG partner Scott London struggled to explain the conduct that ruined his career and is very likely to send him to federal prison. “It was probably the worst day of my life,” London said in an interview in the hallway outside the courtroom of U.S. District Judge George H. Wu, who is scheduled to sentence London on Oct. 21. “Imagine what you do, you do it for 30 years, you go to school for it and in a matter of weeks it's all gone,” London said.
BUSINESS
April 11, 2013 | By Walter Hamilton, Andrea Chang and Tiffany Hsu, Los Angeles Times
It's the kind of audacious but small-stakes insider trading that normally wouldn't have merited much attention. Golfing buddies Scott London and Bryan Shaw netted just $1.3 million, a blip in a world where Wall Street kingpins pocket hundreds of millions in ill-gotten gains. The two men made one misstep after another. Their haplessness virtually guaranteed they'd get nailed, experts said. The scope of their ill-fated caper was made clear Thursday when federal prosecutors in Los Angeles filed a criminal charge against London, alleging that he passed insider tips to Shaw from 2010 to 2013.
BUSINESS
April 10, 2013 | By Walter Hamilton, Tiffany Hsu and Andrew Khouri, Los Angeles Times
Scott London, a Los Angeles partner in one of the nation's largest accounting firms, says it began four years ago. By his account, a friend with money trouble was poking around for information on Herbalife Ltd. and Skechers USA Inc., two Los Angeles-area companies whose audits London personally oversaw. Soon, he says, he was passing inside tips on the companies that resulted in as much as $100,000 in profit for his buddy. In return, he says, he collected "about $25,000" in cash, was treated to fancy dinners and received a Rolex watch as a gift.
BUSINESS
August 5, 2011 | By E. Scott Reckard, Los Angeles Times
In the latest legal fallout from the mortgage implosion, Wells Fargo & Co. has agreed to pay $590 million and accounting firm KPMG has agreed to pay $37 million to settle class-action lawsuits centering on controversial "pick-a-pay" loans issued by Oakland's World Savings and later by Wachovia Corp. Wells Fargo disclosed the proposed settlement Friday in a quarterly filing with the Securities and Exchange Commission. If approved by a judge, the deal would settle claims of misrepresentation that investors brought against Wachovia, which acquired World Savings' parent company in 2006 and was taken over in turn by Wells Fargo during the financial crisis.
BUSINESS
April 10, 2004 | From Bloomberg
KPMG did not design an illegal tax evasion scheme for WorldCom Inc. and should be allowed to remain its auditor, the No. 2 U.S. long-distance phone company said in court papers. Several states, led by Massachusetts, want KPMG disqualified as WorldCom's auditor and forced to return $146 million in fees for designing a strategy that helped the company avoid hundreds of millions of dollars in state taxes from 1998 to 2001.
BUSINESS
October 20, 2005 | Kathy M. Kristof, Times Staff Writer
A federal prosecutor Wednesday asked a Los Angeles judge to deny bail to a former KPMG accounting firm partner indicted in a sweeping tax fraud case, calling him a flight risk and a "danger to the community." David Greenberg, 46, was one of 10 former KPMG executives indicted Monday in connection with the design and marketing of alleged phony tax shelters. He was the only defendant to be arrested by authorities. U.S. District Judge Andrew J.
BUSINESS
April 10, 2013 | By Stuart Pfeifer and Tiffany Hsu, Los Angeles Times
This was the last thing Herbalife Ltd. needed. Just as the Los Angeles company appeared to be regaining its footing from a Wall Street hedge fund manager's assault, the company's auditor resigned abruptly because of an alleged insider-trading scandal. Accounting giant KPMG said Tuesday that Scott London, its chief Southern California auditor, had divulged financial information about Herbalife to a friend who then used those secrets to gain an edge in the markets. KPMG fired London, who had supervised Herbalife's audits, and withdrew its approval of the company's financial statements.
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