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Apr 12, 2013

Ex-KPMG auditor freed on $150,000 bond in tips-for-cash scheme

NEW YORK, April 11 (Reuters) – As investors Carl Icahn and
William Ackman bickered loudly on TV earlier this year about
their opposing bets on Herbalife, two other men were discussing
the company in a different context: getting non-public
information to trade ahead of the stock’s next move.

Referring to Icahn’s announcement that he had purchased a
large stake in the nutritional products company, one of the men
said: “I wish you would’ve known that he was going to release
that and we could’ve made some money.”

Apr 11, 2013

U.S. charges ex-KPMG auditor in tips-for-cash scheme

NEW YORK, April 11 (Reuters) – U.S. authorities on Thursday
filed criminal and civil charges against a former KPMG senior
auditor who is accused of passing non-public information about
five of KPMG’s corporate clients to a golfing buddy who traded
on the tips.

Prosecutors charged Scott London, the Los Angeles-based
auditor, with one count of conspiracy to commit securities fraud
for giving Brian Shaw, a jeweler, information about public
companies including, Herbalife, Skechers and
Deckers Outdoor Corporation.

Apr 11, 2013

U.S. to file charges soon in ex-KPMG auditor’s case: source

NEW YORK (Reuters) – U.S. authorities could file criminal charges against a former senior KPMG auditor and a friend who swapped insider tips on corporate clients of the international accounting firm for cash as soon as Thursday, a source familiar with the matter told Reuters.

Both men are cooperating with the government in its investigation into the tips Scott London, the Los Angeles-based auditor, admitted to giving Brian Shaw, a jeweler, about the companies Herbalife and Skechers.

Apr 10, 2013

FBI found KPMG auditor via golf buddy, his lawyer says

NEW YORK, April 10 (Reuters) – A former KPMG senior audit
partner who resigned after admitting to passing on inside
information about corporate clients Herbalife Ltd and
Skechers USA Inc was betrayed by the golf partner he had
been tipping, the auditor’s lawyer said.

The unidentified man led federal investigators to former
KPMG partner Scott I. London, after being approached by agents
with the FBI, said Harlan Braun, the lawyer representing London,
Wednesday.

Apr 10, 2013

Ex-KPMG auditor’s lawyer says inside trader cooperating with FBI

NEW YORK (Reuters) – The man who had received inside information on Herbalife Ltd (HLF.N: Quote, Profile, Research, Stock Buzz) and footwear maker Skechers USA Inc (SKX.N: Quote, Profile, Research, Stock Buzz) from a senior KPMG auditor in Los Angeles is cooperating with federal investigators, the former auditor’s lawyer said on Wednesday.

“This was a pretty contained investigation,” said Harland Brawn, the lawyer representing Scott I. London. London left KPMG KPMG.UL last week after admitting to sharing non-public information about the nutritional products group and footwear maker with a golfing buddy who used it to trade stocks.

Apr 9, 2013

FBI probes trading as KPMG quits as Herbalife, Skechers auditor

By Martinne Geller and Emily Flitter

(Reuters) – In a blow to one of the world’s largest accounting firms, KPMG said it resigned as auditor of two U.S. companies amid an FBI investigation into insider trading allegations involving a former senior partner.

The companies – nutritional products group Herbalife Ltd and footwear maker Skechers USA Inc – said separately on Tuesday that KPMG had quit as their auditor in connection with alleged leaks of nonpublic information.

Apr 3, 2013
via Unstructured Finance

The burden of being SAC Capital’s “Portfolio Manager B”

Michael Steinberg, the SAC Capital Advisers portfolio manager who was arrested at the crack of dawn last Friday morning probably envies former Goldman Sachs trader Matthew Taylor’s rush-hour surrender to the Federal Bureau of Investigation on Wednesday.

While Steinberg was led away in handcuffs as a Wall Street Journal reporter took shaky video footage of the scene outside his door at 6am, Taylor sauntered into FBI headquarters in New York on his own, at 8:30am, having had plenty of time to collect his wits with a cup of hot coffee.

Apr 3, 2013

Ex-Goldman trader Taylor turns himself in to authorities -sources

NEW YORK (Reuters) – Ex-Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) trader Matthew Marshall Taylor has turned himself in to federal authorities in connection with charges that he defrauded the Wall Street bank out of $118 million in 2007, two sources familiar with the matter said.

Taylor voluntarily turned himself in to agents with the Federal Bureau of Investigation in New York around 8:30 a.m. EDT on Wednesday morning, said the sources, who spoke on condition of anonymity.

Mar 31, 2013

Analysis: Insider case against SAC manager may be tough to prove

NEW YORK (Reuters) – To win a guilty verdict against one of hedge fund titan Steven A Cohen’s most senior portfolio managers, U.S. prosecutors face a tough task: convincing a jury that a man who already admitted to breaking the law is telling the truth on the witness stand.

On Friday, U.S. authorities arrested and charged Michael Steinberg, a 16-year veteran of Cohen’s $15 billion SAC Capital Advisors, with insider trading in shares of the technology stocks Dell (DELL.O: Quote, Profile, Research, Stock Buzz) and Nvidia (NVDA.O: Quote, Profile, Research, Stock Buzz).

Mar 31, 2013

Insider case against SAC manager may be tough to prove

NEW YORK, March 31 (Reuters) – To win a guilty verdict
against one of hedge fund titan Steven A Cohen’s most senior
portfolio managers, U.S. prosecutors face a tough task:
convincing a jury that a man who already admitted to breaking
the law is telling the truth on the witness stand.

On Friday, U.S. authorities arrested and charged Michael
Steinberg, a 16-year veteran of Cohen’s $15 billion SAC Capital
Advisors, with insider trading in shares of the technology
stocks Dell and Nvidia.

    • About Emily

      "Based in New York covering financial crimes, including insider trading, investment scams, accounting fraud and financial firm misconduct."
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