(Corrects spelling of lawyer's name throughout from Brawn)
By Emily Flitter
NEW YORK, April 10 The man who had received
inside information on Herbalife Ltd and footwear maker
Skechers USA Inc from a senior KPMG auditor in Los
Angeles is cooperating with federal investigators, the former
auditor's lawyer said on Wednesday.
"This was a pretty contained investigation," said Harland
Braun, the lawyer representing Scott I. London. London left KPMG
last week after admitting to sharing non-public
information about the nutritional products group and footwear
maker with a golfing buddy who used it to trade stocks.
Braun said the recipient of the information, whose name he
declined to provide, first ran into trouble when the stock
brokerage he was using to make the trades noticed something was
wrong and cut him off.
Later, when he was approached by the Federal Bureau of
Investigation, the man agreed to cooperate, Braun said. He told
the FBI London was the person giving him the non-public
A spokeswoman for the FBI in Los Angeles declined to
Herbalife and Skechers, both based in California, said
separately on Tuesday that KPMG had quit as their auditor in
connection with the leaks.
KPMG said in a statement late on Monday that the person who
had leaked information about the companies had left the firm.
Sketchers Chief Financial Officer David Weinberg on Tuesday
identified the person as London.
(Reporting by Emily Flitter; Editing by Richard Chang)