A former partner at the accounting firm KPMG has agreed to plead guilty to a securities fraud charge for providing insider information to a friend who plied him in return with cash bribes, a Rolex watch and other luxury items.
Scott London, 50, agreed to plead guilty to one felony count of securities fraud that carries a maximum 20-year prison term in the US.
He is scheduled to appear in court on Friday.
London gave privileged information to friend and jewellery store owner Bryan Shaw over a period of several years.
Shaw then used the information to trade in advance of announcements for KPMG clients such as Herbalife and Skechers USA. He is estimated to have reaped more than $1m in illicit profits.
In exchange, Shaw gave London bags filled with cash, along with a $12,000 Rolex watch and jewellery for his wife, among other items, prosecutors said.
The Securities and Exchange Commission, which filed civil charges in the case, estimates London received at least $50,000.
"Behaviour like this is an affront to people who follow the law and compromises the public perception in the inherent fairness of the markets by creating an uneven playing field," said US Attorney Andre Birotte Jr.
Shaw has pleaded guilty to one count of conspiracy and is scheduled to be sentenced in September. He faces a maximum of five years in prison.
London was a senior partner at KPMG who supervised more than 500 accounting professionals at the firm and personally handled audits for major clients.
