Skechers gets new auditor after insider-trading allegations
Skechers USA Inc. appointed a new auditor Wednesday to replace its former accounting firm, KPMG, which was rocked by an insider trading scandal and resigned earlier this month.
The Manhattan Beach shoe maker’s board of directors named BDO USA as its new independent auditor. BDO is expected to re-audit Skechers’ financial statements for the last two fiscal years.
KPMG resigned as the shoe company’s auditor in April after one of its partners, Scott London, was accused of leaking inside information on five public companies to a friend in exchange for cash and jewelry. Those companies included Herbalife Ltd. in Los Angeles and Skechers, based in Manhattan Beach.
Quiz: How much do you know about California’s economy?
London’s golfing pal, Bryan Shaw, an Encino jeweler, made about $1.2 million over a period of a few years based on London’s advice, said the Department of Justice. Federal prosecutors charged London with one count of conspiracy to commit securities fraud through insider trading.
“Skechers’ focus during this transition period has been on finding new auditors, preparing to report our first quarter 2013 earnings, and managing our global footwear business,” began Chief Operating and Financial Officer David Weinberg.
“With BDO now in place, we believe that they will efficiently audit the last two fiscal years of our consolidated financial statements and expertly handle our future audit needs.”
KPMG had been Skechers’ auditor since it launched in 1992, Weinberg previously told The Times. London had worked on the account off and on for about eight years total.
Skechers expects to file its first quarter report for 2013 on time on May 10, but may ask for an extension no later than May 15, the company said in a statement.
ALSO:
Number of homes entering foreclosure plunges in California
North America powers big Ford Motor Co. first-quarter profit
Employer health premiums rose 170% in California in last decade
Follow Adolfo Flores on Twitter.
