Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

14 months for Scott London in insider trading case

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The Los Angeles Times is reporting KPMG partner who gave tips to golf buddy sentenced for insider trading.

Stuart Pfeifer reports Judge George Wu sentenced Scott London to 14 months in federal prison and a $100,000 fine.

Defense counsel had argued for 6 to 12 months, according to the article.

More info to follow.

Update 1 at 12:35:

First 4 visible articles:

Written by Jim Ulvog

April 24, 2014, 12:30 pm at 12:30 pm

Posted in Audits

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Sentencing for Scott London still set for 11:00 a.m. today

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As of 7:00 this morning, the federal PACER system still shows an order that sentencing will take place today, 4/24, at 11:00 Pacific time.

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Written by Jim Ulvog

April 24, 2014, 7:02 am at 7:02 am

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London sentencing watch – scheduled for 4/24 at 11 am as of 4/21

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The sentencing for Scott London on his guilty plea for insider trading has been moved back three hours. As of 4/21 he is still scheduled to be sentenced this Thursday, 4/24, but will be appearing at 11:00 a.m. Pacific time instead of 8:00 a.m.

I took a look at the docket this afternoon and found a few items that may be of wider interest.

Sentencing documents

Lots of documents have been filed under seal since my last post on sentencing.  The government’s sentencing memorandum was filed on 4/7; item #47 on the docket. I discussed the government’s recommendation here and here.

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Written by Jim Ulvog

April 21, 2014, 17:27 pm at 5:27 pm

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Olympus sued by 6 banks over accounting fraud; largest in a series of suits

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Bloomberg reports Olympus Sued for $273 Million After 13-Year Fraud.

Six banks filed suit claiming 27.9 billion yen ($273M) damages from the drop in stock price after the fraud was disclosed.

The article says Olympus was sued in November 2012 by a group of investors. That claim was for 19.1B Yen ($186M). That one had been preceded by 14 other suits.

Written by Jim Ulvog

April 16, 2014, 8:43 am at 8:43 am

Posted in Fraud

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Insider trading sentencing watch – London’s trading partner Shaw scheduled to be sentenced May 19

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I’ve not been reading the federal court filings for Mr. Bryan Shaw, partner in crime of former KPMG partner Mr. Scott London. Started looking at them this evening.

Most pertinent information at the moment is that his sentencing hearing is scheduled for May 19, 2014 at 8 a.m.

The sentencing has been postponed several times.

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Written by Jim Ulvog

April 15, 2014, 20:11 pm at 8:11 pm

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London sentencing watch – request filed to continue hearing three days, to April 24

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On 4/14/14, the U.S. Attorney and Scott London’s attorney filed a request to postpone the sentencing hearing for Mr. London from April 21 to April 24.

The reason cited is that Mr. London’s attorney will be out of town on Monday. The filing says the court clerk indicated there is time available in the schedule on Thursday.

The court has not issued the order, but I would assume that it will easily be approved.

So we will wait patiently for a week from Thursday.

Written by Jim Ulvog

April 15, 2014, 19:45 pm at 7:45 pm

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How do you keep one rogue employee from destroying your company?

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That is the question asked on my other blog, Nonprofit Update: How do you keep one rogue employee from destroying your company? Or at least prevent a FCPA guilty plea and $108M fine?

That is a question I’ve pondered over the years. Have asked several of my clients the question and haven’t gotten any great answers.

I did get helpful answers from two of my clients, but the circumstances are so specific that I can’t share anything of the conversations.

Good internal controls will help. A great ‘tone at the top’ will go a long ways. Showing in everyday actions and words that ethical behavior is the expected norm will be a powerful message. Aggressively dealing with known behavior that is outside the boundaries will send a powerful message to the organization.

But how do you make sure that some completely out-of-control person doesn’t do something that can threaten the existence of your organization?

See the linked post to read of 4 examples that are in the back of my mind.

Written by Jim Ulvog

April 14, 2014, 8:32 am at 8:32 am

Posted in Other stuff, Pondering

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