Former KPMG partner pleads guilty to insider trading

Scott London, the former KPMG senior partner embroiled in an insider trading case in the US, has now pleaded guilty to leaking confidential client information to a friend who subsequently profited by more than $1m (£658,140) in stock trading.

The 50-year-old, who faces a 20-year jail term, admitted to one count of securities fraud in a Los Angeles federal court.

The former KPMG partner admitted, as part of his plea agreement, that he leaked information about 14 separate acquisitions or earnings announcements of KPMG clients before these were made public, Bloomberg reported.

London's friend, Bryan Shaw, who benefitted by about $1.3m from the information, pleaded guilty to one count of conspiracy on 20 May.

He had begun cooperating with prosecutors in February, assisting in gathering evidence against London through secretly recording their conversations.Shaw also faces a five-year prison term.

Penny Sukhraj |Content editor, Accountancy - (up to 2016)

Penny Sukhraj, former content editor and writer for Accountancy and Accountancy Live, responsible for commissioning and editing news...

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