Scott London, an accountant and former auditor for KPMG, pleaded guilty Monday to an insider-trading charge in U.S. District Court in Los Angeles. The Agoura Hills resident admitted to providing insider information he obtained as a public company auditor to friend Bryan Shaw, who made more than $1 million in illegal trading profits. London admitted he disclosed confidential information to Shaw prior to 14 earnings announcements or press releases by KPMG clients, in exchange for cash, jewels and concert tickets. Shaw pleaded guilty to conspiracy in May. Shaw said he gave London bags containing $100 bills wrapped in $10,000 bundles, in addition to a $12,000 Rolex Daytona Cosmograph watch. Shaw is scheduled to be sentenced on Sept. 16. The tips included several quarterly earnings reports by Herbalife Ltd., earnings from Deckers Outdoor Corp., United Rentals Inc.’s December 2011 Announcement of its Acquisition of RSC Holdings, Union Bank’s March 2012 Announcement of its acquisition of Pacific Capital Bancorp. London faces up to 20 years and Shaw five years in federal prison, but both are expected to be given less due to the men’s lack of a previous criminal record. Shaw also cooperated with authorities and wore a wire that snagged his friend. London’s sentencing date has not been set. London supervised hundreds of auditors in the L.A. office, giving him access to a wide range of private information. As a result of the scandal, KPMG resigned as auditor of Herbalife and at least one other company.
