California jeweler, who gave the former KPMG firm of auditors cash, expensive watches and concert tickets in exchange for Monday agreed to plead guilty to one count of conspiracy to commit securities fraud insider information of listed companies, according to court papers.
Brian Shaw, the jeweler the Herbalife (HLF.N) and Skechers (SKX.N) and other companies from Scott London, a friend of his one-time golf tips, agreed to pay compensation of about $ 1.3 million, and will continue to cooperate with the part of the plea agreement and federal prosecutors, according to documents.
Shaw is expected to appear in federal court later this week officially entered the guilty plea. His lawyer, Nathan Hochman partner in Bingham McCutchen in Los Angeles, did not respond to requests for comment.
London, the end of its 29-year career, his shooting and arrest last month in KPMG served as the head of the Los Angeles firm of Certified Public Accountants audit practice.
, "A small AndréBirotte", a lawyer for the Central District of California said, "These two men are close friends, sharing dinner, concerts, sporting events, and profitable, each of them secret information.
London, Shaw is so happy, should be kept confidential, proprietary information. "
According to the information submitted by the United States Attorney's Office, London gave 5, Xiao insider tips, listed companies and transactions to provide a period of two years. In return, Shaw London, to thousands of dollars in cash, a Rolex watch and a Bruce Springsteen concert tickets, among other things.
When federal investigators to catch up with Shaw, who for a number of tricks, he agreed to cooperate with them.
Shaw recorded telephone conversation, he and London to discuss the audit and supervision of the company in London, trading of non-public information. Watch as an agent from the Federal Bureau of Investigation, Xiao met in London, in a parking lot, handed him an envelope full of cash tips.
Harland Braun, a London lawyer, did not respond to requests for comment.
Cooperate with the investigation, pleaded guilty in exchange for Shaw likely to get a lighter punishment. According to his plea agreement, the government said, as long as the cooperation of prosecutors with Shaw satisfied, they will recommend two levels of crimes decreased levels of decision sentencing guidelines.
A spokesman of the U.S. Attorney's Office said the maximum sentence for conspiracy count is five years. He declined to speculate on how much Shaw could get commutation.
Skechers and Herbalife In addition, London was accused of leaking information Deckers Outdoor Corporation (DECK.O) and Pacific Capital Bancorp and Union Bank of mergers between and RSC Holdings and joint tenancy (URI.N) plan.
When the leak became public, Skechers and Herbalife's auditors KPMG resigned.
KPMG spokesman declined to comment.
Is set to formally arraigned in London on May 17. Braun said that London will plead guilty.
The case is United States v. Brian Shaw, United States District Court for the Central District of California.
 
 



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