Jim Ulvog

Initial report at about 12:25 from CNBC: 5 months in prison.

Will update during day as more reports become visible.

Updates:

Reuters reports Jeweler who traded on ex-KPMG partner’s tips sentenced to prison. Report says five months in prison. No fine, in light of $1.9M already paid to SEC as penalty and disgorgement. Prosecution was only asking for $3K fine; that is a minor difference between $0 and $3K.

Los Angeles Times runs that infamous parking lot photo at top of article: Informant in KPMG insider trading case sentenced to 5 months in prison. The reporter, Riley Snyder, was obviously in court during sentencing provided some of the context you won’t otherwise see in reporting or transcripts:

Shaw, who was joined by several family members in court, fought through tears to deliver a handwritten apology to Wu before the sentencing.

You will never, ever see me again,” Shaw said, his voice quivering.

Post-Periodical – Encino Jeweler Sentenced for Insider Trading – Also, 3 years supervised release.

5:30 update – From the few stats available on my site, it looks like there are quite a few people clicking through to the articles linked above. Good. I’ll provide a few more:

The State – LA merchant gets prison for insider trading – This is the Associated Press version of the story, which will appear in many places. It is rather short. Won’t give any new info to anyone who has visited this blog, but is a good 20 line summary.

LA Business Journal – Insider Trading Co-Conspirator Sentenced – Extremely short summary – 12 lines.

6/3 update:

LA Times article by Riley Snyder updated at 7:01 p.m. – Bryan Shaw sentenced to prison in KPMG insider trading case.  A few new details.  The judge recommends a federal facility for nonviolent offenders, either in Lompoc or Taft.  Upland’s ex-mayor, John Pomierski, served his time in Taft. Mr. Shaw has 60 days to report, which would be about 8/2.

Update: Mr. Shaw released on 11/28/14 after serving 5 months.

 

UPDATE – sentencing coverage in this post.

The federal PACER system does not show any updates as of the evening of 6/1 that would change the scheduled sentencing of Bryan Shaw on 6/2 for conspiracy for his insider trading based on information provided by former KPMG partner Scott London. Scheduled for 8:00 a.m. on June 2.

The defense has filed a supplemental sentencing document that spells out in more detail the cooperation provided by Mr. Shaw. I read through it and glanced at the initial complaint against Mr. London. Here are a few highlights:

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Bryan Shaw sentencing watch. – Update on chronology.Read More »

On May 5, the presiding judge postponed sentencing from May 19 to June 2 for Bryan Shaw, who pled guilty to insider trading. He  based his trades on information provided by Scott London, formerly regional audit PIC for KPMG.

The U.S. Attorney is requesting 6 months in jail, 3 years supervised released, and a $3,000 fine.

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Sentencing date postponed for inside trader Bryan Shaw; Feds request 6 monthsRead More »

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.

After the sentencing yesterday for former KPMG partner Scott London, I was confused by conflicting comments indicating the defense had both requested probation and a short jail sentence during the hearing. Those seem to be contradictory positions.

The Wall Street Journal article Former KPMG Partner Scott London Gets 14 Months for Insider Trading helps me put a few pieces together.

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Sequence of arguments for sentencing in Scott London caseRead More »

Now we can count some of the hard and soft consequences in Scott London’s insider trading journey.

Jail time

From news reports of the day, here is his sentence: …

Judicial consequences and small consequences for insider trading – #12Read More »

A few quotes are filtering out in news reports about the sentencing today for Scott London over his admitted insider trading.

The Wall Street Journal provides the following quote in their article, – Former KPMG Partner Scott London Gets 14 Months in Prison for Insider Trading: …

Other than that Mrs. Lincoln, how was the play? – quotes from Scott London sentencing hearingRead More »

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:

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  14 months for Scott London in insider trading caseRead More »