Former KPMG Partner Guilty of Insider Trading

A former partner at KPMG has pleaded guilty to a securities fraud charge stemming from alleged insider trading information provided to a friend who paid him in cash and luxury items, the Associated Press reported. Scott London entered the plea July 1 in U.S. District Court in Los Angeles. The case involves giving privileged information to a friend, Bryan Shaw, who then made trades prior to announcements by Herbalife and Skechers, gaining $1 million in profits. For his part, Shaw has pleaded guilty to one count of conspiracy. London acknowledged that he disclosed inside information to Shaw regarding at least 14 separate earnings announcements or acquisitions for KPMG clients. Sentencing is set for Oct. 21.