The Canadian Press - ONLINE EDITION

Los Angeles jewelry store owner involved in KPMG insider trading sentenced to federal prison

  • Print

LOS ANGELES, Calif. - 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.

"Behaviour 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.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Faron Hall honoured by Mayor Sam Katz - May 6, 2009

View more like this

Photo Store Gallery

  • Two baby tigers were unveiled at the Assiniboine Park Zoo this morning, October 3rd, 2011. (TREVOR HAGAN/WINNIPEG FREE PRESS)
  • PHIL.HOSSACK@FREEPRESS.MB.CA 101130-Winnipeg Free Press Columns of light reach skyward to the stars above Sanford Mb Tuesday night. The effect is produced by streetlights refracting through ice crystals suspended in the air on humid winter nights. Stand Up.....

View More Gallery Photos

Poll

What do you think of the new Blue Bombers uniforms?

View Results

View Related Story

Ads by Google