Tags: Skechers | Herbalife | FBI | investigation

Ex-KPMG Auditor's Lawyer Says Inside Trader Cooperating With FBI

Wednesday, 10 April 2013 03:34 PM

The man who had received inside information on Herbalife Ltd and footwear maker Skechers USA Inc 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 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.

Brawn said the recipient of the information, whose name he declined to provide, first ran into trouble when the stock brokerage he was using to make the trades noticed something was wrong and cut him off.

Later, when he was approached by the Federal Bureau of Investigation, the man agreed to cooperate, Brawn said. He told the FBI London was the person giving him the non-public information.

A spokeswoman for the FBI in Los Angeles declined to comment.

Herbalife and Skechers, both based in California, said separately on Tuesday that KPMG had quit as their auditor in connection with the leaks.

KPMG said in a statement late on Monday that the person who had leaked information about the companies had left the firm. Sketchers Chief Financial Officer David Weinberg on Tuesday identified the person as London.

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The man who had received inside information on Herbalife Ltd and footwear maker Skechers USA Inc from a senior KPMG auditor in Los Angeles is cooperating with federal investigators, the former auditor's lawyer said on Wednesday.
Skechers,Herbalife,FBI,investigation
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2013-34-10
Wednesday, 10 April 2013 03:34 PM
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