KPMG senior partner Scott London gave insider information to his friend, Los Angeles jeweler Bryan Shaw, about shoemaker Deckers Outdoor Corp (NASDAQ:DECK) and that London “apparently tipped Shaw off on at least two mergers and acquisitions, one involving a company called Pacific Capital Bancorp merger in March of last year” reports FOX Business Network’s (FBN) Liz Claman. Claman also reports that, “Shaw has been cooperating with the Feds since January by wearing a wire and tapping phone conversations with London.”
Excerpts from the report are below.
On the insider trading scandal involving former KPMG senior partner Scott London:
“Major breaking news on this case it now appears that the now-fired KPMG partner Scott London did not stop at giving his friend, LA jeweler Bryan Shaw inside information about Herbalife Ltd. (NYSE:HLF) and Skechers USA Inc (NYSE:SKX) but also gave him information about another one of his corporate clients, Deckers Outdoor, the maker of Uggs and Teva shoes, so now we have three stocks involved in this case…FOX Business has learned that Shaw has been cooperating with the Feds since January by wearing a wire and tapping phone conversations with London.
The FBI, the SEC and Justice Department are still investigating because according to sources telling the FOX Business Network, when London, the KPMG partner who agreed to cooperate, he did not reveal all the companies he had tipped off his friend about. Also breaking, not only is Deckers Outdoors the new name involved here, but London apparently tipped Shaw off on at least two mergers and acquisitions, one involving a company called Pacific Capital Bancorp merger in March of last year.”