The Securities and Exchange Commission filed insider trading charges against a former senior partner at New York-based tax and audit firm KPMG on Thursday.
The New York Times reported that regulators accused Scott London of providing confidential information regarding several of KPMG’s clients to Bryan Shaw, a Los Angeles-based jeweler, who earned more than $1 million from trading on the tips.
Shaw was not criminally charged, but named in a related civil action brought by the SEC. Both men have publicly confessed to the crimes.
In a statement released late Thursday, KPMG CEO John Veihmeyer said that the firm would bring legal action against London.
Some of the KPMG's clients whose information was compromised include nutritional supplement company Herbalife and footwear company Skechers.