Estimated read time: 1-2 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
LOS ANGELES (AP) — A jewelry store owner who prosecutors say made about $1.6 million trading on inside information from KPMG has been sentenced to five months in federal prison.
Bryan Shaw pleaded guilty to conspiracy last year and was sentenced Monday in Los Angeles. U.S. District Judge George H. Wu did not impose any fines because Shaw already has returned $1.27 million to the Securities and Exchange Commission and has paid penalties of $635,893.
Prosecutors say KPMG partner Scott London provided confidential client information to Shaw in exchange for cash and goods including jewelry, concert tickets and a $12,000 Rolex watch. Scott, who was fired, was sentenced in April to 14 months in federal prison for insider trading and fined $100,000.
London was a senior partner at KPMG who supervised more than 500 accounting professionals at the firm and personally handled audits for major clients. He had faced a potential sentence of 20 years in prison. Shaw had faced up to five years.
Prosecutors say Shaw used the information from London to make stock trades in advance of announcements by KPMG clients such as Herbalife Ltd. and Skechers USA. This went on for several years.
"Behavior like this is an affront to people who follow the law and compromises the public perception in the inherent fairness of the markets by creating an uneven playing field," said U.S. Attorney Andre Birotte Jr.
Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
