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.
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