This page has been archived and commenting is disabled.

Meet The KPMG Partner Who Allegedly Leaked Secret Client Data To The Highest Bidder

Tyler Durden's picture




 

The KMPG partner at the heart of today's Herbalife/KPMG fiasco was unknown for several hours, until finally his name resurfaced. Per Reuters: "Scott London, a partner at accounting firm KPMG, was the lead auditor for Skechers USA Inc who resigned after allegedly leaking insider information to traders, said Skechers Chief Financial Officer on Tuesday. In an interview, CFO David Weinberg said he was surprised to learn late on Monday from partners at KPMG that London had admitted to the allegations and was leaving the firm."

And from the WSJ:

KPMG said late Monday that the partner had allegedly provided inside information about its clients to someone who had used that information in stock trading. That person wasn't connected with the battle between Messrs. Ackman and Icahn over Herbalife, said a person familiar with the situation. The recipient of the alleged insider information hasn't been named.

 

KPMG didn't name the partner involved in the allegations, whom it described as in charge of its audit practice in its Los Angeles business unit.

 

KPMG partner Scott London headed the audit of Herbalife for the accounting firm. Mr. London didn't immediately respond to requests for comment.

Introducing Scott (Via LinkedIn). We are confident the SEC, FBI and the DOJ (long after the fact) will be delighted to make an acquaintance.

Bloomberg's Jon Weil did some more sleuthing and found out that Scott London...

... also has an interesting side gig: Chairman of the Los Angeles Sports Council. The nonprofit describes its mission as "the promotion of spectator sports programs in the Los Angeles and Orange County area, including support of our local teams and the attraction of events to the area."

 

Here's where that connection gets curious. Look on the left-hand column of the sports council's website, under the heading "Supporting Our Local Teams," and you'll see a list of logos and names, including Major League Soccer's Los Angeles Galaxy. And what's the first thing you notice when you click on the Galaxy? Herbalife and its logo are all over the team's website, including across the front of the Galaxy players' jerseys. That's because Herbalife, which sells nutritional supplements, is the team's main sponsor.

 

Yet perhaps there was another reason for investors to wonder about KPMG's independence from Herbalife, or at least the appearance thereof: London is chairman of an organization that, quite literally, is a cheerleader for a professional sports franchise that is inseparable from Herbalife and its brand.

Maybe there was a connection between London and Herbalife after all...

One wonders if following the demise of expert networks in late 2010 as a legitimate source of paid inside information, the hedge fund community realized there is a just as eager, and potentially cheaper source, of insider info on companies they want to buy or sell. And that source just happens to be partners (disgruntled or otherwise), and other staffers at Big 4 accounting firms.

One also wonders just how deep the rabbit hole revealed by Scott will be, and just how many hedge funds are exposed to have generated "alpha" thanks solely to the information provided by Scott and others like him.

We can't wait to find out.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 04/09/2013 - 16:50 | 3428376 DoChenRollingBearing
DoChenRollingBearing's picture

Address?

Tue, 04/09/2013 - 16:53 | 3428396 iDealMeat
iDealMeat's picture

I'm sensing some squid soon to pop up..

Tue, 04/09/2013 - 16:53 | 3428404 Divided States ...
Divided States of America's picture

This fucker better not be Jewish

Tue, 04/09/2013 - 16:57 | 3428419 onewayticket2
onewayticket2's picture

i see london

i see france

scott better put a cup

in his underpants

Tue, 04/09/2013 - 17:04 | 3428445 James_Cole
James_Cole's picture

Sort of OT, but godbless LinkedIn. When are these guys going to stop making public accounts I wonder?

Tue, 04/09/2013 - 17:08 | 3428462 SemperFord
SemperFord's picture

Yeah but in his LinkedIn pic he looks like Kevin Nealon, who I have seen live and is one funny mother F er!

Tue, 04/09/2013 - 17:16 | 3428475 AssFire
AssFire's picture

His dad, Dr. Evil warned him to ZIP IT and he still couldn't keep his mouth shut!

http://www.youtube.com/watch?v=32C0eKRQVt8

Tue, 04/09/2013 - 18:56 | 3428797 12ToothAssassin
12ToothAssassin's picture

"Parnter"

Tue, 04/09/2013 - 19:26 | 3428913 toys for tits
toys for tits's picture

A 100 years ago this shit was legal.

'On a long enough timeline everything becomes illegal.'

Tue, 04/09/2013 - 21:58 | 3429347 jeff montanye
jeff montanye's picture

semper ford is on to something:  same profession (as doug wilson), same high forehead, etc.):

http://www.buddytv.com/articles/Image/weeds/dougwilson.jpg

Wed, 04/10/2013 - 00:00 | 3429681 palmereldritch
palmereldritch's picture

Hey, that's 29 years in Audit as a Parnter...

 

unfuckingbelievable

Tue, 04/09/2013 - 17:13 | 3428477 McMolotov
McMolotov's picture

His facefuck page is probably full of a bunch of "Dude, you won't believe how I'm scamming these assholes!!1!11!!" posts.

Tue, 04/09/2013 - 17:00 | 3428423 WTFx10
WTFx10's picture

HMMM what are the odds? They are never involved in illegal dealings when money and finance is involved.

Gangsters can ONLY be Italian or some OTHER race?

Tue, 04/09/2013 - 23:33 | 3429615 SmackDaddy
SmackDaddy's picture

How fucking stupid do you have to be to get caught doing something this easy?

Tue, 04/09/2013 - 17:01 | 3428426 francis_sawyer
francis_sawyer's picture

Inconcievable... NOBODY named 'Scott London' is jewish [or would ever try to hide his roots]...

Tue, 04/09/2013 - 17:12 | 3428471 McMolotov
McMolotov's picture

Who's gonna hide from their jewishness in the field of accounting? Hell, there are probably fakers pretending to be jewish accountants, calling themselves "Saul Rothsteinbergman" and whatnot.

Tue, 04/09/2013 - 17:29 | 3428522 francis_sawyer
francis_sawyer's picture

I'm not pickin' any bones here...

~~~

Hell ~ I fucking LOVE CSUN [see below]... No shit ~ I was humping the ever loving shit out of a South African exchange student just off campus during the '94 quake... She thought it was ME...

I'm just glad I wasn't doin' it in the parking garage...

Maybe God DOES like me after all...

Tue, 04/09/2013 - 18:56 | 3428795 Headbanger
Headbanger's picture

We doubt it.

Tue, 04/09/2013 - 19:01 | 3428822 bigfire
bigfire's picture

Unless you're banging that student at 4 in the morning, I'll have to call BS on this.

Tue, 04/09/2013 - 19:05 | 3428831 Headbanger
Headbanger's picture

Ya think?

Wed, 04/10/2013 - 01:27 | 3429806 francis_sawyer
francis_sawyer's picture

Not kidding...

~~~

I fudged a little on the 'time'... But we were both lying there asleep [a place over off of Winnetka] when it happened...

Here's the funny thing though... This girl, like I said, was from South Africa [name was 'Ann']... Scouts honor, she was with me, in a completely different place [over in West LA], during the Landers Quake '92... It was eerily similar because the time was roughly equivalent... I mean like serious deja vu...

Oddly also ~ We were pretty much smack dab in the middle of the Northridge Quake, but it was the Landers Quake that scared the shit out of me [intensity wise ~ though the epicenter was much farther away]... Only time I've ever been real scared during a quake [& I've been thru many]... I seriously thought the building was gonna come down on us... I was like... "OK ~ This is it"... I'm talking about Landers... So we actually had a little laugh about the Northridge one because it was like... "Been there, done that"...

Tue, 04/09/2013 - 17:17 | 3428473 israhole
israhole's picture

We'll know  by the punishment he gets.  Jews walk almost always, while goyim are made examples.  An exception is Madoff who simply deposited investors' checks to the tune of billions directly into his accounts for over 50 years, before he absolutely had to sing due to investor nervousness leading to redemption requests.  Our Jewish controlled media like CNBC claimed he was a "Mastermind" right after his staged "bust". Otherwise he would have continued for the last few years of his thieving life.

Goyim are fools, just like the Jews teach their own.

Tue, 04/09/2013 - 17:24 | 3428511 SilverIsKing
SilverIsKing's picture

You must be goyim.

Tue, 04/09/2013 - 22:02 | 3429356 jeff montanye
jeff montanye's picture

as greater minds have observed:  ya think?

madoff broke the rule: stole from the tribe.

Tue, 04/09/2013 - 18:57 | 3428801 Chupacabra-322
Chupacabra-322's picture

@ Divided States.

Zionist yes.

Tue, 04/09/2013 - 17:01 | 3428430 HedgeAccordingly
HedgeAccordingly's picture

oopsies

Tue, 04/09/2013 - 19:27 | 3428923 CheapBastard
CheapBastard's picture

Taking a leak is illegal? Since when?

Tue, 04/09/2013 - 19:52 | 3429004 Buck Johnson
Buck Johnson's picture

Herb a life is a major Pyramid that is about to fold under.  The auditor turns out to be essentially working for the company and KPMG firing and then quiting as an auditor.  Because they don't trust what he was saying in regard to Herb a life.

Tue, 04/09/2013 - 19:55 | 3429007 Larry Dallas
Larry Dallas's picture

All these accountants have inferiority complexes. They just sit all day at the client office, have to do mundate accounting going back several years watching the arbs kill it and bankers buy vineyards for their trophy wives. I've seen it sooo many times.

Tue, 04/09/2013 - 16:49 | 3428379 SheepDog-One
SheepDog-One's picture

SEC, DOJ, FBI...best guys in the world at bringing plenty of chalk to draw the outlines of the victims long after the robbery.

Tue, 04/09/2013 - 17:01 | 3428425 insanelysane
insanelysane's picture

"We are confident the SEC, FBI and the DOJ (long after the fact) will be delighted to make an acquaintance."

Only if their masters tell them to.

Tue, 04/09/2013 - 21:58 | 3429346 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

SEC, DOJ, FBI...best guys in the world at bringing plenty of chalk to draw the outlines of the victims long after the robbery.

Hey, they're not just chalk outliners - they're trained professionals. You'll be impressed with their precision as they flawlessly extract a settlement for a $500 fine and no admission of wrongdoing.

You'll see.

Tue, 04/09/2013 - 16:49 | 3428380 lizzy36
lizzy36's picture

Ahhhh poor scott.

Probably had an addicition to something (hooker, blow and/or the ponies), which made him exploit his position for monetary gain.

Quick trip to rehab. A check to make sure he doesn't have any offshore accounts and problem solved.

Tue, 04/09/2013 - 16:56 | 3428408 Sudden Debt
Sudden Debt's picture

we are all scott...

Tue, 04/09/2013 - 17:15 | 3428485 Joe Davola
Joe Davola's picture

Hookers and blow are certainly possible, but it is SoCal - probably wanted some new fun bags to play around with, whether attached to the old lady or a newer model.

Tue, 04/09/2013 - 16:49 | 3428381 Silver_K-9
Silver_K-9's picture

GO MATADORS!

CSUN c/o 1998!!!!

That's how we roll in the 818!

Tue, 04/09/2013 - 17:05 | 3428438 francis_sawyer
francis_sawyer's picture

Glorified 'Pierce College'... [for those with 2.0 instead of 1.9 GPA's & had a better tolerance to earthquakes]...

~~~

CSUN 'Alpha Phi's' are EASY tho...

Tue, 04/09/2013 - 17:06 | 3428450 urbanelf
urbanelf's picture

Who the fuck downvoted the 818?!?!?!  Obviously they've never been to our sweet McDonald's on Reseda and Nordhoff.

Tue, 04/09/2013 - 17:15 | 3428482 bigfire
bigfire's picture

Nah, I preferred In-N-Out Burgers.  Better value for your bucks.

Tue, 04/09/2013 - 17:31 | 3428527 TeamDepends
TeamDepends's picture

Las Fuentes

Tue, 04/09/2013 - 18:50 | 3428780 francis_sawyer
francis_sawyer's picture

GTFO ~ 'McDonald's'?... Back in my day it was a 'Stuart Anderson's Black Angus' on that corner...

~~~

I used to spin records at a place called 'Josephina's' [Oh no wait... That was over on Corbin]...

Tue, 04/09/2013 - 19:02 | 3428819 Chupacabra-322
Chupacabra-322's picture

@ Francis,

However, today 5 Guys Burgers & Fries rules.

Tue, 04/09/2013 - 16:51 | 3428383 SheepDog-One
SheepDog-One's picture

He looks like a sneaky little shit.

Tue, 04/09/2013 - 17:07 | 3428447 McMolotov
McMolotov's picture

He definitely has the look of the weasel about him. I was hoping for some "Great Scott!" jokes in Tyler's article, and maybe a "he'll get off Scott-free."

Tue, 04/09/2013 - 17:29 | 3428524 prains
prains's picture

macroforehead scott

Tue, 04/09/2013 - 19:02 | 3428827 Headbanger
Headbanger's picture

Yeah, WTF, over?

Tue, 04/09/2013 - 16:51 | 3428386 Sudden Debt
Sudden Debt's picture

Career... over and out...
switch to banking job in...3... 2.... 1..... BONUS!!!!

Tue, 04/09/2013 - 16:51 | 3428387 q99x2
q99x2's picture

Made so much money he reitired.

Tue, 04/09/2013 - 16:50 | 3428388 Windemup
Windemup's picture

Something stinks. He is a CIA asset, or he is a dupe. I get the feeling I am being told to look over there while the action is over there, no the other there. Who will be found dead floating up in their hot tub or falling of a sixth floor balcony next?

 

Tue, 04/09/2013 - 19:04 | 3428834 Chupacabra-322
Chupacabra-322's picture

Perhaps, The Global Criminal Cabal (Bankster/Intelligence) Crime Syndicate is slipping.

Look for more "Agent Smiths" to fall. They do eat their own.

Tue, 04/09/2013 - 16:52 | 3428389 SheepDog-One
SheepDog-One's picture

See, the problem was he was only a 'Parnter'.

Tue, 04/09/2013 - 17:03 | 3428440 onewayticket2
onewayticket2's picture

but they nailed the degree....BS, Accounting

Tue, 04/09/2013 - 16:53 | 3428392 FIAT
FIAT's picture

This will be buried

Tue, 04/09/2013 - 16:54 | 3428400 Sudden Debt
Sudden Debt's picture

it happens quite more often than you might think :)

we're a supplier to the biggest OEM and we have our own investment club at work :)

Tue, 04/09/2013 - 16:54 | 3428403 gamera9
gamera9's picture

Might be a good time to become an Obama donor bundler

Tue, 04/09/2013 - 16:56 | 3428406 pappacass
pappacass's picture

Don't let him near a bathtub over the next fortnight or so.  Defo sucide risk.

Tue, 04/09/2013 - 16:56 | 3428410 urbanelf
urbanelf's picture

His alma mater is right in my hometown.  I'm so proud.

Tue, 04/09/2013 - 16:56 | 3428411 e m m
e m m's picture

He has also won the 2nd place in the regional Kyle Bass similarity contest.

Tue, 04/09/2013 - 16:59 | 3428421 insanelysane
insanelysane's picture

I think they guy posted a picture of Kevin Nealon to his LinkedIn account.

Tue, 04/09/2013 - 17:01 | 3428428 Yen Cross
Yen Cross's picture

     Is it just me, or does (Scott) look like he just came back from a long lunch right before 'Team Picture Day'?

Tue, 04/09/2013 - 17:09 | 3428466 BandGap
BandGap's picture

Or did a doobie.

I'm sure he's a great guy with a bright future.

Tue, 04/09/2013 - 17:01 | 3428434 buzzsaw99
buzzsaw99's picture

30 lashes with a wet noodle.

Tue, 04/09/2013 - 17:23 | 3428510 Sudden Debt
Sudden Debt's picture

:)

Tue, 04/09/2013 - 17:03 | 3428435 Goldilocks
Goldilocks's picture

Donald Rumsfeld Unknown Unknowns !
http://www.youtube.com/watch?v=GiPe1OiKQuk (0:35)

 

Tue, 04/09/2013 - 17:02 | 3428436 williambanzai7
williambanzai7's picture

Nothing that a few hundred million in client funded fines won't fix.

Tue, 04/09/2013 - 17:05 | 3428442 LawsofPhysics
LawsofPhysics's picture

Want to return trust and accountability to the financial sector?  Begin by executing this fucker publically.  Let the masses eat blood pudding (and cake).

Tue, 04/09/2013 - 17:09 | 3428465 BattlegroundEur...
BattlegroundEurope2011's picture

You mean him deciding to "leave the firm" under his own steam is not enough?

Tough crowd. Sheez.

 

 

 

Tue, 04/09/2013 - 17:05 | 3428448 Cursive
Cursive's picture

I'm really beginning to like LKND for the shame factor.

Tue, 04/09/2013 - 17:14 | 3428459 bigfire
bigfire's picture

Weird spelling of Parnter in the first section of his bio.  Guess they didn't catch that.  Oh for those of you not from the Valley, his school is always referred to as CSUN, not Cal State Northridge by the locals.

Tue, 04/09/2013 - 17:27 | 3428519 Mototard at Large
Mototard at Large's picture

Good pickup.  I missed that.

Tue, 04/09/2013 - 17:14 | 3428481 conspicio
conspicio's picture

I hear there is an opening at the helm of the LA Sports Council, too...

Tue, 04/09/2013 - 17:18 | 3428491 Dan Conway
Dan Conway's picture

The firm will get shaken down by the SEC/DOJ for a sizable fine but admit no wrongdoing.  There is no way that the SEC indict a big accounting firm and start a chain reaction like the andersen implosion.  Just a fine, a little downsizing, a lot of uncomfortable conversations over golf and really fancy dinners with plenty of wine and lobster explaining why this would never happen to their account which might lead to some fee decreases but nothing serious.

Tue, 04/09/2013 - 17:20 | 3428496 williambanzai7
williambanzai7's picture

Perhaps he can find new employment as Angelo Mozillos towel monkey.

Tue, 04/09/2013 - 17:21 | 3428501 Budd aka Sidewinder
Budd aka Sidewinder's picture

"So Scott, how'd it go?"

 

"Crushed it"

 

<sips on Corona>

Tue, 04/09/2013 - 17:24 | 3428513 astoriajoe
astoriajoe's picture

BS Accounting. Indeed.

Tue, 04/09/2013 - 17:31 | 3428529 kchrisc
kchrisc's picture

I think that they should put this guy in jail but only after they put Corzine, Bernake, Geithner, Greenspan, Dimon...there first.             hujel

Tue, 04/09/2013 - 17:38 | 3428551 rodocostarica
rodocostarica's picture

Got your 15 minutes of fame Mr London. Only the SEC can make it longer. Doubt it.

Tue, 04/09/2013 - 17:40 | 3428559 Bicycle Repairman
Bicycle Repairman's picture

Scottster:

1.  Get all your credit cards.

2.  Go to the Obama campaign site on the web and max out your contribution on each card.

3.  Go real heavy with the "Man Tan"

4.  Give an interview in ebonics.  Wear a hood.  Toss a gang sign.

When you hear Obama say "he looks like my accountant", you might just be able to sue Herbalife for your troubles.

Tue, 04/09/2013 - 17:51 | 3428567 Aurora Ex Machina
Aurora Ex Machina's picture

Looks better than when Arthur Andersen got thrown the ENRON blame.

 

/sarc

 

 

p.s.

 

Is all that's holding up this pyramid a single billionaire, Madelaine Albright and the knowledge this is the last gasp of the American Dream? Delightful, this is going to crash, hard.

Tue, 04/09/2013 - 17:43 | 3428568 CharliePrince
CharliePrince's picture

being a criminal has its downsides

 

dumbass

Tue, 04/09/2013 - 17:44 | 3428569 CharliePrince
CharliePrince's picture

being a criminal has its downsides

 

dumbass

Tue, 04/09/2013 - 17:58 | 3428601 JeffB
JeffB's picture

I have to wonder how he ever got caught. Surely he wouldn't have been stupid enough to send info via his company email account. Did he do so over recorded phone lines?

Or did someone just make a lucky guess and he fessed up?

Would his friend(s) be dumb enough to make blatantly obvious trades based on the info?

 

Tue, 04/09/2013 - 18:03 | 3428619 Spectre
Spectre's picture

Another accountant, another snake. BFD

Tue, 04/09/2013 - 18:07 | 3428631 Disenchanted
Disenchanted's picture

 

 

 

"the promotion of spectator sports programs in the Los Angeles and Orange County area"

 

= funneling taxpayer $$ into the coffers of private interests(private as in 'capitalist free marketers' most likely).

Tue, 04/09/2013 - 19:01 | 3428815 Headbanger
Headbanger's picture

And what's with that forehead !!??

Tue, 04/09/2013 - 19:16 | 3428877 dolph9
dolph9's picture

No tears for patsies.

They knew with whom they made their bed.

Tue, 04/09/2013 - 19:33 | 3428937 tdogg
tdogg's picture

whatever happened to ZH's person of the week(Month)?  where they highlight a person working in the shadows of the banking industry & who was basically being a duche.

haven't seen one of those in a while.

Tue, 04/09/2013 - 20:30 | 3429094 Downtoolong
Downtoolong's picture


"That person wasn't connected with the battle between Messrs. Ackman and Icahn over Herbalife"

Um, I think anyone trading in HLF stock is indirectly connected via the market with the battle between Ichan and Ackman. How the hell could you possibly avoid it?

As for that sports team, I can imagine Steve Cohen at SAC sponsoring about fifteen of them now that all his expert networks are shut down.

Sing it everyone: It’s a small world after all, it’s a small world after all, it’s a small world after all, it’s a small, small, world…….da dee dee dum dum.

Tue, 04/09/2013 - 22:47 | 3429455 saveUSsavers
saveUSsavers's picture

SCUMBAG ROT IN HELL

Wed, 04/10/2013 - 08:29 | 3430359 BinAround
BinAround's picture

There are tens of thousands of accountants who know the quarterly sales and profit figures before they are publicaly disclosed.  It would be childishly naive to think that every one of these knows how to keep a secret.  That's why technical analysis works.  Somebody will trade on this information before the fundamentals are widely known.   

Do NOT follow this link or you will be banned from the site!