Scott London, the auditor fired by KPMG, appeared before a federal judge Thursday to answer to accusations that he helped orchestrate an insider-trading scheme that racked up $1.3 million in ill-gotten gains.
A somber expression on his face, London entered the Roybal Federal Courthouse in downtown Los Angeles shortly after 1 p.m. His attorney, Harland W. Braun, did not answer questions posed by a reporter. By 2 p.m., London's case had not been called.
His arraignment may be scheduled for later Thursday afternoon. The initial appearance was devoted to bail considerations, the court clerk said.
The disgraced ex-auditor faces one federal count of conspiracy to commit securities fraud through insider trading.
“The public has every right to fully expect a level playing field in our financial markets," U.S. Atty. André Birotte Jr. said earlier Thursday. “As alleged in the complaint, Mr. London chose to betray the trust placed in him as a financial auditor and to tip the trading scales for the benefit of insiders like himself.”
The 24-page affidavit alleges that London provided confidential information about KPMG clients to Bryan Shaw, a close friend, over a period of several years and that Shaw used the information to make highly profitable securities trades that generated more than $1 million in illegal proceeds.