Audits

Previous post explained Mr. Scott London surrendered his CPA license as a consequence of his guilty plea to insider trading. This discussion will go through the timing of the disciplinary process and outline a few more well-deserved consequences Mr. London has earned.

Update #74, which contains a summary of the action can be found here. The formal disciplinary action can be found here.

Timing

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More consequences of insider trading – #11Read More »

California Board of Accountancy’s Update #74, sent by email this morning, had the following news:

LONDON, SCOTT IAN

Agoura Hills, CA (CPA 46174)

CBA ACTIONS

Surrender of CPA license, via stipulated settlement.

Mr. London shall pay the CBA its costs of investigation and prosecution in the amount of $1,637.50 prior to issuance of a new or reinstated license.

Effective December 27, 2013

CAUSE FOR DISCIPLINE

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Scott London surrendered his CPA license in December 2013Read More »

Since there has been so much traffic today checking out posts about the scheduled date for Scott London’s sentencing for his admitted insider trading (thank you for the mention, Going Concern!), I thought to check the federal document system before turning in for the night.

Guess what I found?

The sentencing has been continued from February 27 to April 21.

Previously mentioned there were four documents filed under seal.

As of yesterday morning, all four entries had a date of 2/18/2014 and said:

SEALED DOCUMENT- Under Seal Document (mat) (Entered: 02/19/2014)

When I looked a few minutes ago, item #45 still had a date of 2/18/2014 but the comment has been changed.  It now reads:

SEALED DOCUMENT- Under Seal Document – Sentencing hearing set for 02/27/14, continued to 04/21/14 at 8:00 a.m. (mat) Modified on 2/24/2014 (jag). (Entered: 02/19/2014)

That means the sentencing which had previously been scheduled for February 27 has now been moved to April 21, 2014.

Everyone who had been looking forward to a generous serving of popcorn and schadenfreude on Thursday will have to wait another 2 months. 

Update:  According to the comments on the docket, sentencing has been continued to the following dates: 10/21/13, 12/9/13, 1/27/14, 2/6/14, 2/27/14, 4/21/14.

Other tidbits: Passport was surrendered on 4/17/13. Turned in $50K on 4/19/13, which is presumably the estimated proceeds of the then-alleged insider trading.

Since we are all anticipating the expected sentencing on Thursday for Mr. Scott London, regional audit PIC, lately of KPMG, here’s two tidbits I’ve noticed over the last few months but haven’t mentioned previously. Cost of re-auditing Herbalife will drop into the category of earned consequences when KPMG gets around to suing Mr. London. In older news, Mr. London updated his LinkedIn profile.

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Minor updates on insider trading fiasco at KPMG including more consequencesRead More »

Sentencing is scheduled for former KPMG regional audit PIC Scott London on February 27, 2014 regarding his plea agreement admitting insider trading. That’s the latest visible information in the federal system that shows filings.

Previous post mentioned on 2/13 that Something in London case about to go under seal.

On 2/18 there were four documents filed under seal. Obviously the contents of those filings aren’t visible on the PACER system. My completely wild, uneducated guess would be those are arguments from the defense and prosecution about sentencing. Could also be recommendations from the federal group that provides sentencing guidance to judges.

If you are really interested, keep your eyes open on Thursday. If you are only slightly interested, check back here. I’ll keep you updated.

Update: Next post – minor updates, including LinkedIn profile and cost of reauditing Herbalife

UPDATE on sentencing date here.

Just checking to see if anything new is showing up on a couple of cases I’m following in the federal PACER system.

Sentencing arguments were due to the court on 2/13/14 in the case of Scott London, lately a senior partner at KPMG. He was the regional audit PIC prior to getting his picture on the front page of the Wall Street Journal during an FBI recorded cash-for-inside-information payment.

On 2/13/14, the Assistant US Attorney filed an ex parte motion to place something under seal. The document description is “other” and the reason is “under seal.”  Setting aside my severely limited knowledge of law and using my businessman’s understanding instead, I think that means the documents will be under seal and the reason it will be nonpublic is under seal.

My very wild guess on the contents is based on the filing taking place on the day the sentencing positions were due. My guess? The sealed document is the sentencing argument from the feds.

Your guess?

Updates:

• Sentencing watch – hearing set for 2/27
• Other minor updates – LinkedIn profile and cost of reauditing Herbalife

UPDATE on sentencing date here.

Good grief. A CPA should know better. Someone who worked in public accounting really, really ought to know better. Someone sent an email telling them not to trade company stock within a specific timeframe really, really, really ought to know better.

The complaint against the accountant who didn’t know better and his unwilling wife as filed by the SEC on 1-28-14 is here. Separately, the US AG filed criminal charges, according to another article: CPA Charged with Insider Trading via His Wife’s Account.

A few highlights of the civil complaint:

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Today’s entry in the dumbest CPA competition: shorting employer’s stock, in advance of bad news, in wife’s accountRead More »