Ex-KPMG Partner London Will Plead Guilty, Lawyer Says

Scott London, the ex-partner of KMPG is going to plead guilty in his case involving insider trading. The recent scheme where Scott London committed insider trading could have had dire consequences but luckily London is willing to suffer the consequences of his actions. London’s plan to please guilty will save the trouble of carrying out hundreds of audits and potentially crashing the stock market. Information on Herbalife was passed on to a client saying that the company will go private and the client should start buying the stock in small blocks to avoid suspicion. London then assures his client that “that’s going to be where you make a ton of money”. If convicted, London could face up to 5 years in prison and he is currently on a $150,000 bail.

Based on London’s actions and consequences, insider trading is not only unethical but illegal. Although it is possible to make a ton of money with little to no effort, the chances of escaping with no consequences are close to zero.  I believe, as an accountant, being ethical is one of the higher priorities. The whole business world revolves around accountants and their practices, so without a public trust in the accounting field, the commercial world will not function.

Written by: Wilson Tang

Source:

http://www.bloomberg.com/news/2013-04-11/ex-kpmg-partner-london-will-plead-guilty-lawyer-says.html

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: