Sketchy KPMG Officer
A recent push by securities regulators and prosecutors in an effort to contain insider trading, has resulted in 180 civil actions and 75 criminal prosecutions. Possibly among them is a senior executive officer from accounting firm KPMG who allegedly leaked insider information about Herbalife and Skechers to a stock trader. Herbalife is a nutritional supplement maker and Skechers is a sneaker company, both of which KPMG has now withdrawn from as an auditor.
Senior executive Scott London remarked that he was ” embarassed” plus regretted “my actions in leaking nonpublic data to a third party regarding the clients I served for KPMG.” He claimed that it was to help a friend who’s business was struggling and no one else at the firm knew what he was doing. Although he has not been charged or entered any pleading, his admittance to wrongdoing was evident in his resignation from the company, which ends his almost 30th year with the company.
Written by Kevin Zhang
Lattman, Peter. “KPMG Cancels Audits Over Insider Trading Inquiry.” The New York Times. The New York Times, 09 Apr. 2013. Web. 9 Apr. 2013. <http://dealbook.nytimes.com/2013/04/09/kpmg-said-to-resign-as-herbalifes-auditor-over-investigation/?partner=rss&emc=rss>.