FORMER KPMG partner at the centre of a rogue trader storm was charged yesterday with passing on insider tips about his clients in exchange for bundles of cash, a $12,000 Rolex watch and Bruce Springsteen concert tickets.
Scott London, who spent 28 years at KPMG before being fired last month, is alleged to have passed on insider information about five of his clients to a golfing buddy who made $1.27m (£830,000) in illicit profits trading on the stocks.
In a bizarre set of details published yesterday, the US watchdog the Securities and Exchange Commission (SEC) said London, 50, would secretly meet his country club colleague Bryan Shaw in the car park of a jewellery store Shaw ran in Encino, California, where he would regularly receive $10,000 in bundles of cash.
The clandestine relationship also included expensive jewellery for London’s wife and dinners for their families. In return, Shaw would receive tips on stocks including Herbalife and Skechers.
Shaw, who has also been charged, gave London at least $50,000 in cash, the SEC said.
The misconduct took place over 18 months starting in October 2010.
The charge carries a statutory maximum penalty of five years in jail and a fine of $250,000 or double the gain or loss from the offence.