Scott London, former KPMG LLP senior partner was sentenced
to 14 months in prison by a federal judge in Los Angeles on Thursday, April 24th.
The former executive, who had been with KPMG for nearly three decades, was
sentenced on an insider trading charge, which he pleaded guilty to.
According
to Reuters, London tipped friend Brian Shaw off more than a dozen times,
enabling him to earn about $1.27 million of illegal profits off of the
information. In return, London was paid about $60,000 in cash and gifts.
Unfortunately for London, insider trading is highly illegal and now he’ll be
paying a fine of $100,000 and spending fourteen months in prison—far shy of the
three years prosecutors sought.
Scott London will serve 14 months in prison for insider trading. Image: Shutterstock |
Shaw also pleaded guilty to his charge—conspiracy—and awaits
sentencing on May 19th.
“I deeply regret my actions,” London
said in court. “I’m embarrassed and ashamed… I blame no one but myself.”
The former executive had asked for no prison time, instead requesting that he
be allowed to do community service instead. However, U.S. District Judge George
Wu said that he felt it was important that London serve some time as
consequence to his serious missteps.
After his fourteen months are up, London will be assigned
three years’ worth of probation and community service. Though prosecuting
attorney James Bowman believes London deserved more prison time for his
actions, he conceded that “what’s important is that people in Mr. London’s
position will see that he’s going to prison.”
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