Friend of fired KPMG partner charged with making illegal trades

Tying up the loose ends from the recent insider trading scandal. Encino jeweler Bryan Shaw agreed to plead guilty to conspiracy to commit securities fraud and will disgorge about $1.3 million in illicit trading profits, prosecutors announced. Shaw had been cooperating with authorities as they developed their case against Scott London (pictured), the former senior executive of the accounting firm who is accused of leaking confidential data about several KPMG clients. From DealBook:

Mr. Shaw turned against Mr. London earlier this year after F.B.I. agents confronted him with evidence of insider trading. Prosecutors caught wind of the illegal activity after Fidelity Investments notified the authorities about unusual trading activity in Mr. Shaw's account. Over a period of weeks, Mr. Shaw recorded telephone calls and meetings with Mr. London. In one instance, as part of a sting operation, the F.B.I. photographed Mr. Shaw handing Mr. London a paper bag with $5,000 in cash. "He viewed it as an unfortunate but necessary part of the process to making things right," Nathan J. Hochman, a lawyer for Mr. Shaw, said last month.