An Encino jeweler who received insider-trading tips from former KPMG partner Scott London was sentenced on Monday to a five-month prison term. Los Angeles U.S. District Judge George Wu sentenced Bryan Shaw who had plead guilty in May 2013 to one count of conspiracy. The prison term was under the recommended federal sentencing guidelines, but prosecutors cited Shaw’s cooperation, which included surreptitiously recording conversations with London after the scheme came to light. London, an Agoura Hills resident, is serving a 14-month prison term handed down April 24 for providing tips about client companies’ earnings and acquisitions. London oversaw a staff of hundreds at KPMG, where he had worked for decades. He received more than $60,000 in cash and gifts from Shaw, who made $1.6 million from his trades. Shaw has already disgorged his profits and paid a $1.9 million settlement to the U.S. Securities and Exchange Commission. Among the companies affected were Herbalife Ltd. and Skechers USA, which both hired new auditing firms. KPMG was not charged in the case.
