LOS ANGELES (AP) — The owner of a San Fernando Valley jewelry store has reached a plea agreement for his role in an insider-trading case involving a former senior partner at accounting firm KPMG.
Prosecutors allege that accountant Scott London provided jeweler Bryan Shaw, a long-time friend and golf partner, with insider information about KPMG clients including Herbalife Ltd., Skechers USA Inc., Uggs maker Deckers Outdoor Corp.
The government alleges that Shaw made over $1 million in illicit profits by trading in advance of company announcements on earnings results or mergers. In exchange, Shaw is alleged to have given London bags filled with cash, along with a Rolex watch and jewelry for his wife, among other items.
The Department of Justice said Shaw was charged Monday with one count of conspiracy for his role in the scheme. As part of the deal, Shaw agreed to plead guilty to the felony offense and admitted that he plotted with London to commit securities fraud. He will also forfeit nearly $1.3 million in illegal stock-trading profits.
Shaw, a 52-year old resident of Lake Sherwood, Calif., is expected to make his initial appearance later this week in U.S. District Court.
London was fired from KPMG and charged last month for his role in the scheme that took place from 2010 to 2012. The 50-year old Agoura Hills, Calif., resident is scheduled to be arraigned on May 17.