Golfing buddy of former KPMG partner admits trading on tips

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A CALIFORNIAN jewellery shop owner has agreed to plead guilty to conspiracy to commit securities fraud after taking tips from a former KPMG audit partner.

Bryan Shaw has made a bargain with prosecutors, agreeing to pay $1.3m in restitution and continue co-operating with their enquiries.

Shaw gave Scott London, the ex-head of KPMG’s audit practice in Los Angeles, cash and gifts including a Rolex watch and Bruce Springsteen tickets in exchange for information on clients, according to court documents.

Shaw then traded on the tips from London, an acquaintance from his golf club. KPMG resigned from audit contracts with Herbalife and Skechers when London stepped down.