The friend of the former KPMG LLP partner in Los Angeles who allegedly provided him with insider information about the auditor’s clients agreed to plead guilty and to pay about $1.3 million in illegal profits, the U.S. said.
Bryan Shaw, 52, the owner of a San Fernando Valley jewelry store, agreed to admit to one count of conspiracy, according to a statement today from U.S. Attorney Andre Birotte Jr. in Los Angeles. The former KPMG partner, Scott London, 50, was charged last month after Shaw had started to cooperate with prosecutors.
“These two men were close friends who shared dinners, concerts, sporting events and secret information that brought profits to each of them,” Birotte said in the statement. “London provided, and Shaw was all too happy to use, proprietary information that should have remained confidential.”
Nathan Hochman, Shaw’s lawyer, didn’t immediately return a call to his office for comment on the plea agreement.
London’s lawyer said after his client’s initial court appearance that he expected London to plead guilty at his arraignment May 17. London is accused of passing inside information about Herbalife Ltd. (HLF:US) and Skechers USA Inc. (SKX:US) in exchange for cash, jewelry and concert tickets.
The case is U.S. v. London, 13-mj-01058, U.S. District Court, Central District of California (Los Angeles).
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