Jail is really, really bad. Are there any other consequence on the horizon for a CPA accused of insider trading?
Oh yeah. There’s a really long list of really bad things in the really near future.
This series of posts has examined the possible consequences on the horizon for Mr. Scott London, former KPMG partner, as a result of his indictment for allegedly trading on insider information. The Feds have accused him of passing on inside info to a golf buddy who in turn allegedly made over a million bucks in trading.
Why this series?
My hope, perhaps just a silly dream, is that focusing on the horrible consequences that fall on the head of people who do bad things will deter a few people from doing bad things.
It’s too late for Mr. London, but not for others.
The Consequences, not an exhaustive list
Let’s revisit the consequences, making the big assumption that the reality is the same as what has been alleged.
The list of consequences is long and the impact huge.
- Jail time
- Criminal fines
- Legal fees for criminal case
- Civil fines
- Criminal tax enforcement
- Loss of employment
- Loss of reputation
- Loss of professional license
- Litigation from employer
- Poster child for favorite cause
- Stress on marriage
- Impact on family
- Fodder for armchair psychoanalysis
- Limited future employability
- Legal fees for civil litigation
- Financial devastation
I worked for Peat, Marwick, Mitchell before the name change to KPMG. I had the utmost respect for all my colleagues while working in the Albuquerque office. Still have a lot of respect for the firm. I’ve had no involvement with PMM/KPMG since leaving the firm, other than working for a bank which had PMM as their auditor. I run a one-person firm that is infinitesimally small compared to KPMG, so they aren’t much competition for me (ahhh, maybe I should turn that the other way around….nah). Filter my comments as you wish.
Let me know your ideas
Did I miss any consequences?