Report: Gov't Says London Should Get 3 Years in PrisonThursday, October 24, 2013
Scott London, the former KPMG auditor who has pled guilty to insider trading, deserves three years in prison and a $100,000 fine, according to a confidential report from the U.S. Probation Office.
The Los Angeles Times reported on Thursday that the recommendation was disclosed in court papers filed by London’s attorney.
London, an Agoura Hills resident, conspired with Bryan Shaw, a jewelry company owner in Encino, to use inside information he obtained as an auditing supervisor at the downtown Los Angeles office of accounting firm KPMG.
Prosecutors allege the insider trading scheme netted nearly $1.3 million in illegal profits, while Shaw gave London cash, jewels and concert tickets.
London’s attorney said in court papers that a three-year sentence was excessive. He proposed 18 to 24 months and a $25,000 fine, arguing that London had already lost his $900,000-a-year job at KPMG.
His partner in the scheme, Shaw, has pled guilty after helping law enforcement collect evidence, including videotapes, against London. He has not been sentenced.
The stocks traded in the scam include Union Bank N.A., Herbalife Ltd. and United Rentals Inc.