* 29-year KPMG veteran sentenced in Los Angeles
* Friend was tipped about news involving KPMG clients
(Adds details of allegations, background; paragraphs 1-4, 7-9)
By Jonathan Stempel
April 24 Former KPMG LLP senior partner Scott
London, who had provided tips to a friend about the accounting
firm's clients, was sentenced to 14 months in prison on an
insider trading charge by a federal judge in Los Angeles on
London, 51, pleaded guilty in July to securities fraud for
having tipped Bryan Shaw, a jeweler and golfing partner, about
at least 14 acquisitions or earnings announcements by KPMG
clients, including Herbalife Ltd and Skechers USA Inc
Prosecutors said Shaw made about $1.27 million of illegal
profit by trading on the information, and paid London more than
$60,000 in cash plus gifts such as a $12,000 Rolex watch and
tickets to a Bruce Springsteen concert in return.
U.S. District Judge George Wu, who imposed the sentence,
also ordered London to pay a $100,000 fine and serve three years
of supervised release, said a spokesman for U.S. Attorney André
Birotte in Los Angeles. London must surrender by July 18.
The prison sentence was shorter than the three-year term
that prosecutors had sought. London had asked for probation.
"It seemed like a fair sentence," London's lawyer, Harland
Braun, said in an interview. "He has given up an enormous
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."
Before his April 2013 arrest, London worked for 29 years at
KPMG and supervised more than 500 people as head of its audit
practice in Los Angeles. London was ultimately fired.
"He is very remorseful," Braun said. "It is inexplicable
what he did, and given his income he didn't do it for money. He
just got on a slippery slope with someone who was his friend,
and he doesn't excuse it."
Shaw pleaded guilty in May 2013 to a conspiracy charge, and
is scheduled to be sentenced on May 19, court records show.
Neither KPMG nor other employees were implicated in wrongdoing.
The case is U.S. v. London, U.S. District Court, Central
District of California, No. 13-cr-00379.
(Reporting by Jonathan Stempel and Ronald Grover in New York;
Editing by Mohammad Zargham)