FBI investigates ex-KPMG partner over allegations of leaked data

FBI investigates ex-KPMG partner over allegations of leaked data

FBI investigate former KPMG partner over allegations he leaked information relating to his audit work at Herbalife and Skechers

A FORMER KPMG PARTNER is under investigation following allegations that information was leaked relating to the audits of LA Galaxy sponsor Herbalife and shoe-maker Skechers.

The Big Four firm was forced to drop its audit with nutrition group Herbalife and Olympic medallist sponsor Skechers amid an FBI investigation into allegations that ex-partner, Scott London, shared information used to trade in several companies, in exchange for funds, The Telegraph reports.

London, who had been with the firm for 30 years and headed up the audit division in the Los Angeles office, confessed to leaking information but made no admission to receiving funds in return in a statement sent to the Wall Street Journal.

London said that all the actions “were by my choice and mine only” and that he was trying to help out a friend whose business was struggling.

“Never once did I pass any documents to him, but rather we spoke on the phone and the information I provided was in the form of a suggestion. He traded on the information, but to this day I am not aware of how much he profited from the information. Regardless, what I have done was wrong and against everything that had believed in.”

The US’ Securities and Exchange Commission and the Federal Bureau of Investigation are reported to be looking into the issue.

A statement from KPMG said that the partner was “immediately separated from the firm” when the allegations were made.

“This individual violated the firm’s rigorous policies and protections, betrayed the trust of clients as well as colleagues, and acted with deliberate disregard for KPMG’s long-standing culture of professionalism and integrity,” it added.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource