FBI found KPMG auditor via golf buddy, his lawyer says
By Emily Flitter
NEW YORK (Reuters) - A former KPMG senior audit partner who quit after admitting to passing on inside information about corporate clients Herbalife Ltd and Skechers USA Inc was identified by the golf partner he had been tipping, the auditor's lawyer said.
The man, who The Wall Street Journal identified late Wednesday as Bryan Shaw, led federal investigators to former KPMG partner Scott I. London after being approached by agents with the FBI, said Harlan Braun, the lawyer representing London.
Reuters has not independently confirmed the man's identity.
The man, who allegedly received inside information on the companies from London, is cooperating with federal investigators, Braun said.
Braun said London had received money in exchange for his inside tips. "It's a clearer case" in which both parties knew they were violating insider trading laws, he said. "This was a pretty contained investigation."
In an interview with The Wall Street Journal on Tuesday, London said he wasn't initially aware his friend was trading on the information.
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 brokerage firm he was using to make the trades got suspicious and refused to allow him to trade anymore. Continued...