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Former KPMG Partner Gets 14 Months

Scott London, a former partner at accounting firm KPMG in downtown Los Angeles, was sentenced Thursday to 14 months in federal prison for insider trading. U.S. District Court Judge George Wu sentenced the 51-year-old Agoura Hills resident, who pled guilty last July to one count of securities fraud after he was arrested following an FBI sting that shocked the L.A. business community. In addition to the prison term, London was ordered to pay a $100,000 fine. He will begin serving his sentence July 18. London admitted he conspired with his golf partner, Bryan Shaw, a jewelry company owner in Encino, who used the inside information to make profitable stock trades. At KPMG, London supervised audits for several local public companies, including Herbalife Ltd. and Skechers USA, which both hired new auditing firms. After the profitable trades drew the attention of authorities, Shaw agreed to cooperate against his friend and wear a wire recording their conversation. Shaw netted about $1.3 million in illegal profits from the trades and in exchange gave London about $70,000 in cash, jewelry and event tickets. London was fired from his job at KPMG in April after the scheme came to light. Shaw is scheduled to be sentenced May 19 and his cooperation is expected to reduce his sentence.

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.

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