This is the second in a series of posts describing comments in an interview of Scott London during a four-hour CPE session on June 26. The first post explained the goal of this series is to organize a number of comments in the session. The course was presented by The Pros & The Cons.
Mr. London says he got around $50,000 in total. He thinks that Mr. Shaw exaggerated the jewelry and concert tickets in order to make the playoffs look bigger. He thinks Mr. Shaw may have paid $3,000 for the watch.
The ticket arrangement is what you might expect amongst friends. Mr. London said that sometimes Mr. Shaw would get the tickets for the two couples evening out and then Mr. London would pick up the dinner. Sometimes it would be the other way around.
Mr. Shaw gets lots of jewelry from customers as trade-ins. Sometimes Mr. London would buy some of those jewelry items from Mr. Shaw and some of them were gifts.
The currency payments started off small at $1,000 or $3,000. The largest at one time was $10,000. As Mr. London thinks of it now, it seems like it was random.
If those recollections are correct, the amount involved is less than the commonly reported $70,000.
A quiet time
When Bryan Shaw’s account at Fidelity was closed, the passing of information stopped.
Mr. London said he knew it was stupid and it probably could become an issue in the future. He realized they shouldn’t have been passing information and trading on it.
I don’t have a transcript of the CPE session so can’t look up the exact words, so those comments may have just been what he was thinking at the time. If I caught the phrasing right, I think there was an actual conversation between them that this was a dumb idea.
From the spring of 2012 until early 2013 there was no activity.
No passing of information. No insider trading.
Next post: The sting.