Business

KPMG partner shown accepting bribe for inside information

Accounting and AuditingFinanceKPMGEconomy, Business and FinanceHerbalife LimitedInsider TradingSkechers USA Incorporated

One of the most damaging pieces of evidence in the case against former KPMG senior partner Scott London, charged with criminal insider trading, is a photograph that allegedly shows London accepting an envelope stuffed with cash from his friend, a jeweler named Bryan Shaw.

Federal prosecutors say London gave secret financial information about two Southern California companies to Shaw in exchange for thousands of dollars.

Prosecutors said Shaw made more than $1 million in illegal profits through trades on the two companies, Herbalife Ltd. and Skechers USA Inc.

Full coverage: KPMG auditor accused of insider trading

London, 50, who spent more than two decades as an auditor for the accounting powerhouse, was fired last week after acknowledging his role in the insider trading case.

KPMG resigned as the auditor for Herbalife and Skechers, forcing the companies to hunt for new accounting firms and placing the credibility of their financial statements in jeopardy.

ALSO:

Herbalife is rocked by new crisis

Anxiety high at KPMG's office in Los Angeles

'What I have done was wrong,' says auditor accused of insider trading

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Copyright © 2014, Los Angeles Times
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Accounting and AuditingFinanceKPMGEconomy, Business and FinanceHerbalife LimitedInsider TradingSkechers USA Incorporated
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