FORE!!!!!!  An accounting partner's "loose lips" were flying overhead, and fortunately avoided harming anyone by the partner, himself.  But the partner promptly returned to his major task at hand:  holing a 50 foot chip shot for an "eagle" on the par 5 hole.  He lined up for the shot, and then the club face began its descent.  A moment before striking the ball, the golfing partner was distracted by the noise of nearby cameras and taping devices, causing him to loft the ball past the flag and into a hazard.  The partner ended up carding a double bogie on the hole.  As a consolation prize, the FBI offered him copies of their photographs and tape recordings. 

That's when he realized that he was set up by his golfing buddy.  It's mind-boggling what some people will do to keep an opponent from shooting an eagle. 

[ by Howard Haykin ]

Of course you know by now that KPMG Partner Scott London leaked confidential information about his audit clients in exchange for a cash payment.  And, as we learned from the opening scenario, the FBI completed its sting operation without a hitch.  It helped Bryan Shaw agreed with authorities to conspire against his longtime friend and frequent golf partner.  He really had no choice in the matter.

News of the sting operation led to Mr. London's firing from KPMG, one of the country's largest accounting firms. 

Admissions From Tipper and Tippee.   Mr. London and Mr. Shaw each has admitted to the insider trading scheme, and it's expected that by week's end, federal prosecutors in L.A., along with securities regulators, will filed charges and complaints against both.  “What I have done was wrong and against everything that I had believed in,” Mr. London, who lives in Agoura Hills, CA, said in a statement issued through his lawyer. “I spent nearly 30 years at KPMG and I dedicated my entire life to that firm.”

And Mr. London was very well rewarded for his dedication to KPMG and its clients.  He was Partner-in-Charge of the audit practice for KPMG in Southern California and a prominent figure in L.A. business circles.  But all that carries not advantages after you've been caught passing on confidential data about 2 of your clients - nutrition supplement maker Herbalife and footwear manufacturer Skechers.  KPMG, in turn, resigned as auditor for both companies.As a result, KPMG resigned as auditor for the two companies. 

And by the way, London received $25K in cash, a Rolex watch and other gifts for his well-timed insider tips.

Meanwhile, Mr. Shaw, was co-owner of Shaw Diamond, a small jewelry wholesaler in Encino, CA.  Through his lawyer, Mr. Shaw acknowledged that he “profited substantially” by trading on stock tips from Mr. London.  “I cannot begin to apologize for my incredibly stupid actions.”  He added that, “There is no excuse for my wrongful conduct.”

For further details, go to:   [ Dealbook, 4/10/13 ].