Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Judicial consequences and small consequences for insider trading – #12

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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:

  • 14 months in jail
  • 36 months probation after jail
  • Unknown community service after jail
  • $100,000 fine.

He must report by July 18. One minor consequence is he knows for the next 85 days he will have to walk into jail. I would make a wild guess the anticipation of that will produce quite a few sleepless nights.

I’ll have more detail when the official sentencing document is available on-line.

Just like the TV show Cheers, eeeeverybody knows your name

Here is a small consequence:

He gets to see his name splashed all across the twitterverse and tons of news reports.

At 6:30 the evening of his sentencing, I did a fast browse on Twitter for “Scott London.” A cursory review found 12 different people tweeting with that exact phrasing, plus my tweets. Those 12 people have about 72,000 followers. Didn’t check for any other wording.  (Didn’t include my 0.05K followers.) Granted there’s a lot of overlap of followers in that group, but still…a huge number of people saw tweets about his sentencing.

In addition, a search on Google for “Scott London” identified 64 news articles in the last six hours on his sentencing. My two posts weren’t picked up in the search yet.

I’ll make a guess the front page of the Wall Street tomorrow covers the sentencing. What do you think the odds are on that famous photo being on the front page? Again.

The sentencing will be in the next issue of every business magazine and in many newspapers tomorrow.

Update: Wow, I called that one wrong. The Wall Street article was on page C3. No photo at all.

 

Written by Jim Ulvog

April 24, 2014, 19:01 pm at 7:01 pm

Posted in Audits

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