Stuart Pfeifer
Fired KPMG auditor can't explain 'lapse of judgment'
Fired KPMG auditor can't explain 'lapse of judgment'

Scott London, a Los Angeles partner in one of the nation's largest accounting firms, says it began four years ago. By his account, a friend with money trouble was poking around for information on Herbalife Ltd. and Skechers USA Inc., two Los Angeles-area companies whose audits London personally oversaw. Soon, he says, he was passing inside tips on the companies that resulted in as much as $100,000 in profit for his buddy. In return, he says, he collected "about $25,000" in cash, was treated to fancy dinners and received a Rolex watch as a gift. On Tuesday, London and his company, KPMG, were caught up in an insider-trading scandal that rocked Wall Street. The furor...