Former KPMG partner London pleads guilty

City A.M. Reporter
SCOTT London, a former senior partner with accounting firm KPMG whose clients included Herbalife and Sketchers USA, pleaded guilty before a federal judge in Los Angeles yesterday to a charge of securities fraud arising from his involvement in insider trading.

London, 50, who supervised more than 500 accounting professionals at KPMG, faces a maximum of 20 years in federal prison and a maximum fine of $5m or twice the gross gain or gross loss resulting from his offence, according to the plea agreement.

The accountant admitted that he gave jeweler Bryan Shaw inside information regarding at least 14 separate earnings announcements or acquisitions by KPMG clients.

London pleaded guilty before US District Court Judge George H Wu.

He is scheduled to be sentenced on 21 October.