Please ensure Javascript is enabled for purposes of website accessibility

(UPDATE) Complaint Says Scott London Admitted to Tipping Bryan Shaw About Five KPMG Clients

~ Update below includes details from the criminal complaint, including Springsteen tickets!

From the Journal:

Mr. London was charged with one count of conspiracy to commit securities fraud through insider trading, according to the criminal complaint. He faces up to five years in prison and a $250,000 fine. The complaint said the trades generated a profit of more than $1 million for his friend, Bryan Shaw. The complaint also says Mr. London tipped off Mr. Shaw about five KPMG clients, more than was previously known. 
Fox Business has posted the complaint which includes an exhibit photo of Bryan Shaw handing an envelope to London that you see above. The five clients that Mr. London says he tipped Shaw about are Herbalife, Skechers, Deckers Outdoor, RSC Holdings, and Pacific Capital Bancorp.
We'll continue to update this post as we wade through the complaint, but you can help us find the interesting stuff too. We've included it on the next page for your reading pleasure.
Go read the complaint if you haven’t. Seriously. FBI Special Agent Jeremy Tarwater doesn’t spare the details. Here are some of the notable ones I pulled out.
The criminal complaint says Shaw made “more than $1 million in illegal profits” from the trades. The SEC’s civil complaint puts it at $1.2 million. All of the companies mentioned in the complaint are KPMG audit clients.
Typically, London would give Shaw a few days heads up on press releases for the companies. Sometimes London would read them to Shaw over the phone. Shaw would give London a little taste of the action afterwards. London would “usually remark that Shaw was too generous and did not have to pay him for the information, but London always took the cash that was offered to him.”
Including the cash, Shaw bought London “expensive meals and paid for concert tickets […] including tickets to a Bruce Springsteen concert.” Shaw says he spent $25,000 to $45,000 on concernt tickets. And yes, there was a Rolex Daytona Cosmograph involved.  
The complaint says that when Fidelity put a hold on Shaw’s account, London told him there was no cause for concern and “that insider trading was like counting cards in Las Vegas — if you were caught, they simply ask you to leave because they cannot prove it.”
On a February 14th phone call, London told Shaw that Herbalife’s earnings guidance was going to be raised and Shaw wanted to know if that meant the stock would go up. London then said, “I’ll find out, I’ll ask my team just to send me…what the guidance, what they’re, how they’re raising it.”
The spat between hedge fund titans Bill Ackman and Carl Icahn over Herabalife played into London and Shaw’s strategy. London told Shaw on a February 19th phone call that because of Ackman’s activities, they should “take a pass on this one” and that there would be future opportunities because Herbalife was raising their earnings guidance. Then there was this exchange regarding Icahn’s large purchase of shares:
Shaw: “I wish you would’ve known that he was going to release that and we could’ve made some money.”
London: “Yeah, that would’ve been nice.”
Over the phone on March 4th, Shaw and London set up to meet on March 7th. “I will get you some cashola,” Shaw said to London.
During that meeting, Shaw wore a wire and a video recorder and the picture of above was taken during the encounter.