Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Consequences – insider trading edition – #10

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Here are a few more consequences awaiting in the near future for Mr. Scott London, former KPMG partner, as he awaits sentencing after his guilty plea to trading on insider information.

These are pulled from his court filing in September.  Going Concern has posted a copy of the filing by Mr. Scott London taking exception to the pre-sentencing report from the United States Probation Office. You can find the filing here.

Here are some more consequences and more detail on some I’ve mentioned before:

  • Jail time – The sentencing report suggests 36 months. Mr. London’s attorney is suggesting something in the range of 18-24 months is more appropriate.
  • Criminal fine – The pre-sentencing report suggests a $100K fine. Mr. London’s attorney suggests $25K.
  • Legal fees – Take a look at that filing linked above. There was some serious legal time that went into drafting that filing. Those hours are expensive.
  • Loss of current annual income of $900,000. This would run from now, when Mr. London is aged 51 through his mandatory retirement at age 60.
  • Loss of appreciation on pension; identified as $2M over next 10 years.

Here is one I would not have guessed at:

  • Complete loss of work friends and colleagues – All of his friends and acquaintances at KPMG are banned from having any contact with Mr. London in any manner. This is by KPMG direction. Seems to me a wise move. The consequence of that ban is none of them can give him any leads for possible future employment. Nor can they encourage or comfort him in his situation.

I’ll update the list as more consequences come to mind.

Previous lists are compiled here.

Written by Jim Ulvog

October 21, 2013, 15:07 pm at 3:07 pm

Posted in Audits

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