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Former KPMG partner pleads guilty to insider trading scheme

Scott London, a former senior partner with accounting firm KPMG, agreed to plead guilty to securities fraud for his involvement in insider trading, according to an announcement from the U.S. Attorney's Office in Los Angeles.London, 50, supervised more than 500 accounting professionals at KPMG and oversaw audits of Herbalife Ltd and Skechers USA Inc , according to prosecutors. He faces a maximum term of 20 years in federal prison and a maximum fine of $5 million or twice the gross gain or gross loss resulting from his offense, according to the plea agreement.London's plea agreement comes about a week after his one-time golfing buddy Bryan Shaw pleaded guilty to one count of conspiracy to commit securities fraud for his role in the scheme.London and his lawyer Harland Braun were not immediately available to comment.Shaw, a jeweler, gave London cash, an expensive watch and other gifts in exchange for tips on Herbalife, Skechers and other companies that helped him generate more than $1 mil...

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