Attestation Update – A&A for CPAs

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KPMG response to Scott London sentencing; possible next step for firm

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KPMG provided me the following statement regarding the sentencing yesterday of Scott London:

It was appropriate that Scott London was held accountable today for the consequences of his illegal and unethical actions.

An extremely vague, hard to understand comment in the CNBC report yesterday, yes, the one wherein the camera operator ran the camera lens into the side of Mr. London’s face, indicated KPMG had taken some financial action against Mr. London. The article cited Mr. London’s attorney as saying that matter had been resolved through the partnership agreement. I don’t understand what that means, but my wild guess is the partnership agreement allowed closing out his retirement account or possibly putting that on hold for the moment. I’ll make another wild guess that he wasn’t allowed to pull any money out of his retirement account.

My businessman’s understanding of the law suggests the guilty plea followed by sentencing would clear the deck to let KPMG proceed with litigation against Mr. London to recover their costs. My wild guess is that KPMG quickly reimbursed Herbalife for the cost of reauditing the Herbalife financial statements for three years. My further guess is that KPMG will be looking to Mr. London for reimbursement, likely through litigation.

The story isn’t over. I’ll keep you updated over the next many months.

Written by Jim Ulvog

April 25, 2014, 13:33 pm at 1:33 pm

Posted in Audits

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  1. […] Jim Ulvog’s latest on l’affaire London An extremely vague, hard to understand comment in the CNBC report yesterday, yes, the one wherein the camera operator ran the camera lens into the side of Mr. London’s face, indicated KPMG had taken some financial action against Mr. London. The article …read more […]


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