Ex-KPMG partner charged with insider trading

Apr 11, 2013, 3:29 PM EDT
The street level sign of the KPMG buliding in downtown Los Angeles is shown April 10, 2013. I
REUTERS/Sam Mircovich

U.S. authorities  filed criminal and civil charges against Scott London, a former KPMG senior auditor who is accused of passing non-public information about five of KPMG's corporate clients to a golfing buddy, jeweler Bryan Shaw, who traded on the tips. Earlier this week, Skechers and Herbalife separately said they had been dropped as audit clients of the accountancy firm following the discovery of alleged leaks of nonpublic information. Shaw made about $1 million trading on the tips and gave London roughly 10% of his profits on each of the trades, according to prosecutors, in the form of cash, jewelry, concert tickets and free meals.