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.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
iDealMeat's picture

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

Divided States of America's picture

This fucker better not be Jewish

onewayticket2's picture

i see london

i see france

scott better put a cup

in his underpants

James_Cole's picture

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

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!

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

toys for tits's picture

A 100 years ago this shit was legal.

'On a long enough timeline everything becomes illegal.'

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

palmereldritch's picture

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

 

unfuckingbelievable

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.

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?

SmackDaddy's picture

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

francis_sawyer's picture

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

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.

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...

bigfire's picture

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

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"...

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.

jeff montanye's picture

as greater minds have observed:  ya think?

madoff broke the rule: stole from the tribe.

CheapBastard's picture

Taking a leak is illegal? Since when?

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.

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.

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.

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.

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.

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.

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.

Silver_K-9's picture

GO MATADORS!

CSUN c/o 1998!!!!

That's how we roll in the 818!

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...

urbanelf's picture

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

bigfire's picture

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

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]...

Chupacabra-322's picture

@ Francis,

However, today 5 Guys Burgers & Fries rules.

SheepDog-One's picture

He looks like a sneaky little shit.

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."

Sudden Debt's picture

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

q99x2's picture

Made so much money he reitired.

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?

 

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.