Flickr / attila acsYesterday, KPMG said it fired one of its senior partners for allegedly leaking non-public information in Herbalife and Skechers to a third party who then traded those stocks.
The now-former KPMG senior partner has been identified as Scott London. He was in charge of the audit practice for KPMG in Southern California.
London essentially threw away his 29-year accounting career.
And for what?
According to the LA Times, he got about $25,000 in cash, some fancy dinners and a Rolex watch in exchange for the tips.
London has acknowledged how “stupid” it was of him.
The third party stock trader made about $100,000 off those trades, the report said. That person hasn’t been identified.
London told the Wall Street Journal the third party person was a golf buddy of his.
The buddy told London that he had traded on the information. London told the Journal that he kept talking to his friend, but didn’t give him any more “significant information.”
In March, London was contacted by the FBI. That’s when he got a lawyer who then told him to stop contacting his golf buddy.
We looked up London’s golf handicap index on GHIN, a web service run by the USGA. According to GHIN, he’s a member of North Ranch Country Club in Conejo Valley. He also has a golf handicap index of 10.3 and his latest outing was in March of this year.
As a result of all this, KPMG resigned as an auditor to Herbalife and Skechers. Both the SEC and FBI are said to be investigating the matter.
[Hat Tip: DealBook]
Here’s London’s LinkedIn page: