LOS ANGELES (AP) -- A former partner at the giant accounting firm KPMG LLC pleaded guilty Monday n Los Angeles to a securities fraud charge for providing insider information to a friend who plied him with cash bribes, a Rolex watch and other luxury items.
Scott London entered the plea in U.S. District Court to a felony count that carries a maximum 20-year prison term. He's scheduled to be sentenced Oct. 21. His attorney could argue for a lesser sentence.
Prosecutors said London gave privileged information to friend and jewelry store owner Bryan Shaw over a period of several years. Shaw then used the information to trade in advance of announcements for KPMG clients such as Herbalife Ltd. and Skechers USA Inc. He is estimated to have reaped more than $1 million in illicit profits.
Shaw has pleaded guilty to one count of conspiracy.
London discovered that he was the target of an investigation when the FBI came to his home and showed London a picture of him accepting cash, according to his lawyer, Harland Braun. London then spoke with investigators for three hours, acknowledging his role.
The SEC is seeking unspecified penalties and restitution against London and Shaw.
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