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I'm not sure this is what white collar defense attorneys would typically advise, but ousted KPMG partner Scott London said he regrets sharing inside information with a third party, though he stresses that the firm "had nothing to do with it." He also said that the information had nothing to do with Herbalife's volatile trading activity earlier this year. "These actions were by my choice and mine only," he said in the unusually candid statement. Both the SEC and FBI are looking into the matter - the feds have been especially aggressive on insider trading activity, though the circumstances in this case seem to pale next to the cases against major Wall Street traders. Of course, we've yet to get the whole story. From London's statement (via the WSJ):
These leaks started a few years back in an effort to help out someone whose business was struggling. From time to time over the last couple of years, this third party would ask me how these clients were doing. On a few occasions over the past few years, this individual would ask if he should buy or sell a stock and I gave him my thoughts indicating whether the stock was a good buy or not. Never once did I pass any documents to him, but rather we spoke on the phone and the information I provided was in the form of a suggestion. He traded on the information, but to this day I am not aware of how much he profited from the information. Regardless, what I have done was wrong and against everything that had believed in. I spent nearly 30 years at KPMG and I dedicated my entire life to that Firm. This is the main reason why this is so difficult for me to go through. Knowing that I have caused harm and embarrassment to those that I respected and admired in the Firm has caused me tremdous [sic] grief that I am sure I will never overcome.
*Update: London just can't stop talking. From the LAT:
By his account, a friend with money trouble was poking around for information on Herbalife Ltd. and Skechers USA Inc., two Los Angeles-area companies whose audits London personally oversaw. Soon, he says, he was passing inside tips on the companies that resulted in as much as $100,000 in profit for his buddy. In return, he says, he collected "about $25,000" in cash, was treated to fancy dinners and received a Rolex watch as a gift.
More about the L.A. accountant at center of insider trading allegations
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.