Prosecutors: Ex-KPMG partner to plead guilty in California insider trading case

LOS ANGELES, Calif. – Prosecutors say a former KPMG partner has agreed to plead guilty to securities fraud in Los Angeles for providing confidential information to a friend who paid him with cash bribes, a Rolex watch and other luxury items.

Federal prosecutors said Tuesday that 50-year-old Scott London agreed to plead guilty to one felony count that carries a maximum 20-year prison term. He is scheduled to appear in court Friday.

Authorities say London gave privileged information to friend Bryan Shaw over several years. Shaw then used the information to trade in advance of announcements for such KPMG clients as Herbalife Ltd and Skechers USA Inc. He is estimated to have reaped more than $1 million in profits.

Shaw has pleaded guilty to one count of conspiracy and is scheduled to be sentenced in September.