Los Angeles jeweler pleads guilty in KPMG caseAP , Associated Press
May. 20, 2013 1:07 PM ET
LOS ANGELES (AP) — The owner of a Los Angeles jewelry store pleaded guilty Monday for his role in an insider-trading case involving a former senior partner at accounting firm KPMG.
Bryan Shaw, 52, pleaded guilty to one count of conspiracy and was scheduled to be sentenced Sept. 16 when he faces a maximum of five years in prison.
"In this guilty plea, Mr. Shaw continued his path to fully accepting responsibility for his actions and doing the right thing," said Shaw's attorney Nathan Hochman.
Authorities said Shaw made more than $1 million in illicit profits by trading in advance of company announcements on earnings results or mergers for KPMG LLC clients, including Herbalife Lt., Skechers USA Inc. and Uggs maker Deckers Outdoor Corp.
In exchange, Shaw gave former KPMG accountant Scott London bags filled with cash, along with a $12,000 Rolex watch and jewelry for his wife, among other items, prosecutors said. The Securities and Exchange Commission, which filed civil charges in the case, estimates London received at least $50,000.
London, 50, who was fired from KPMG, also is charged with conspiracy and is scheduled to be arraigned next week.
Shaw called his actions "stupid" in a statement shortly after being charged and said he would take full responsibility for what he's done.