The SEC has filed a civil action against former KPMG partner Scott London and his golf buddy accusing them of trading on inside information.
The SEC alleges that the golf buddy made illegal profits of at least $1.27M (paragraph 7 on page 2).
Whether the SEC’s or FBI’s estimate of gains is correct, my recollection of several on-line articles suggests those amounts indicate the pair is exposed to some serious jail time.
Related articles in reverse chronological order:
- KPMG partner arraigned – might plead guilty – hint on how to avoid jailtime?
- SEC files complaint against former KPMG partner
- KPMG partner indicted for insider trading. Indictment shows fiasco is far worse than shown in initial reports
- Initial highlights of insider trading by KPMG partner
- Live example of the ‘Wall Street Journal’ test