A former partner at accounting firm KPMG has pleaded guilty in Los Angeles to a securities fraud charge for providing insider information to a friend who plied him in return with cash bribes, a Rolex watch and other luxury items. It follows a plea agreement reached in May.
Scott London entered the plea Monday to a felony count that carries a maximum 20-year prison term. He's scheduled to be sentenced Oct. 21.
Prosecutors say 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.
Shaw is estimated to have reaped about $1.27 million in illicit profits, according to the U.S. Attorney's Office. London's defense and federal prosecutors have yet to agree to specifically how much money was involved in the case between bribes, stock losses and Shaw's profits.
Shaw has pleaded guilty to one count of conspiracy.