Scott London Sentenced to 14 Months for Insider Trading

Scott London, former KPMG LLP senior partner was sentenced to 14 months in prison by a federal judge in Los Angeles on Thursday, April 24^th. 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

London’s lawyer, Harland Braun calls the outcome a “fair sentence,” and says that London “gave up a huge amount, in terms of his career and the public disgrace. When he was confronted by the FBI, he protected KPMG and his clients by fully cooperating immediately.”

Shaw also pleaded guilty to his charge—conspiracy—and awaits sentencing on May 19^th.

“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.”