Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Comments from Scott London interview – part 6

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This is the sixth 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 and The Cons.

This post will cover a few stray comments in the interview.

Expectation of total amount of insider trading gains

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Written by Jim Ulvog

July 21, 2014, 7:23 am at 7:23 am

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Scott London is in prison on 7/19/14. Expected release date 7/23/15.

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Looks like he surrendered into custody yesterday.

The Bureau of Prisons has an Inmate Locator Service which provides location and incarceration data for all federal prisoners since 1982. Lookup is by name or register number.

As of Saturday morning, 7/19, the locator shows Scott London (register 64641-112) is incarcerated at Taft Correctional Institute, near Bakersfield, California.

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Written by Jim Ulvog

July 19, 2014, 6:57 am at 6:57 am

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Scott London expected to report to prison on Friday; Bryan Shaw is already in custody.

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At sentencing, Judge Wu ordered Scott London to report to prison by noon on July 18. That is today.

When I checked the Federal Bureau of Prisons Inmate Locator Service on Thursday evening, it showed Mr. London’s status as not in custody with no release date. That’s what I expected.

Then I checked on Mr. Shaw. The court sentenced Mr. Shaw to 5 months with recommendation of confinement at either Taft or Lompoc with orders to report by August 1, 2014.

He is already in custody.

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Written by Jim Ulvog

July 18, 2014, 6:54 am at 6:54 am

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What is the point of accounting? Providing economic history or predicting the future?

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That is the underlying question raised by Prof. Charles M. C. Lee in a speech he gave which is summarized in an article at the Stanford graduate school of business website: Charles Lee: Why Fair-Value Accounting Isn’t Fair.

Let me help you stretch your brain. After writing this article, mine hurts. (Okay, okay, I hear you saying it doesn’t take much to strain Jim’s brain.)

The professor’s full speech is here. I read the first third of the paper, up to the point he starts talking about stock valuation theory. Good stuff.

One sentence summary from the article: Read the rest of this entry »

Written by Jim Ulvog

July 17, 2014, 8:27 am at 8:27 am

Posted in Accounting, Pondering

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Comments from Scott London interview – part 5 – motivation

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This is the fifth 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 and The Cons.

Motivation

In the interview, Mr. London said he is still working through the issues that led him to do this. The underlying factor is a behavioral issue inside of him. He insisted it has nothing to do with the KPMG system.

At the point that sharing transitioned from public to nonpublic information, Mr. London thinks he was responding to the appeal of human nature to help a friend in need once in a while. There was a definite slippery slope. In the midst of these comments Mr. London was clear that he took the blame.

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Written by Jim Ulvog

July 16, 2014, 15:44 pm at 3:44 pm

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Comments from Scott London interview – part 4

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This is the fourth 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 and The Cons.

The worst day of his life

The FBI knocked on the door of the London home at 8 AM after everyone else had left the house. Mr. London said that was the worst day of his life.

No kidding.

The interview lasted about 15 minutes. Their biggest concern? How many other people were involved.

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Written by Jim Ulvog

July 14, 2014, 7:58 am at 7:58 am

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Comments from Scott London interview – part 3

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This is the third 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 and The Cons.

Status with Bureau of Prisons

As an aside, the Bureau of Prisons has an Inmate Locator Service, which provides public disclosure of federal inmates.

On July 10, Scott London is listed in their database. His register number is 64641-112.

His status is Not in BOP Custody with a release date of Unknown.

Back to the interview…

The sting

Let’s step outside the interview.  At a time I’ll tie in later, the SEC called Mr. Shaw. He poured out the whole story.

Then the FBI got involved and the sting started.

Back to the interview.

In early 2013 Mr. London received three or four phone calls from Mr. Shaw asking for more information.

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Written by Jim Ulvog

July 11, 2014, 8:08 am at 8:08 am

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