By Harvey Silverglate, Contributor
KPMG LLP, one of the Big Four international accounting outfits, just got a bitter taste of what happens when a partner’s loyalty to the firm erodes. During a March 20 interview with the FBI, former Los Angeles-based partner Scott London admitted to passing confidential inside information about some of the firm’s audit clients to a friend, Bryan Shaw. Shaw reportedly admitted to trading on that information and making over a million dollars, a small portion of which he shared with London. The Wall Street Journal reported that KPMG Chairman and Chief Executive John Veihmeyer was “appalled” to learn of Mr. London’s “violations of trust.”