U.S. charges ex-KPMG auditor in tips-for-cash scheme
Source: reuters
As investors Carl Icahn and William Ackman bickered loudly on TV earlier this year about their opposing bets on Herbalife, two other men were discussing the company in a different context: getting non-public information to trade ahead of the stock's next move.
Referring to Icahn's announcement that he had purchased a large stake in the nutritional products company, one of the men said: "I wish you would've known that he was going to release that and we could've made some money."
The other replied: "Yeah, that would've been nice."
The conversation was part of a call California jeweler Bryan Shaw recorded and later shared with the Federal Bureau of Investigation to help in their investigation of his longtime golf partner, Scott London. At the time, London was a senior KPMG auditor who had been leaking inside information about his corporate clients to Shaw.
U.S. authorities filed criminal and civil charges on Thursday against London, who is accused of passing Shaw non-public information about five of KPMG's clients.
Read more: http://www.reuters.com/article/2013/04/11/us-kpmg-trading-charges-idUSBRE93A0R720130411
