Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

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 & 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.

Mr. London confessed to passing inside information and adamantly insisted he was the only person involved at the firm and had only passed information to Mr. Shaw.

The interviewing agent agreed with Mr. London’s comment that it would be a good idea to get an attorney.

Mr. London obtained legal counsel the next day and called the FBI a day or two later to set up a meeting.

It took about 10 days to get the schedules together for him and his attorney to meet with the FBI, SEC, and Department of Justice.

Mr. London, with his attorney, had a two-hour meeting with all of the feds. He convinced them that the only people involved were Mr. Shaw and himself.

At some point after the big meeting (I’m not sure if it was that day or a few days later) the feds told Mr. London he could tell his firm. Prior to this, the FBI had told him not to talk to anyone at the firm about it. The reason is they weren’t sure who else was involved.

At four o’clock the next day, Mr. London called to explain the situation to someone in New York; I didn’t catch the name or title. Mr. London then called the local managing partner to fill him in. Those were both short discussions.

The next morning, a Friday, Mr. London received a 6 a.m. call from KPMG’s in-firm legal counsel asking for contact info of his attorney. Later that day Mr. London was terminated.

Previous posts in this series:

Next post:  motivation

Written by Jim Ulvog

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

Posted in Audits

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