Arthur London Case : The Perfect Family, A Beautiful House, Luxury Cars, Great Friends
Scott London had it all – the perfect family, a gorgeous house, luxury cars, great friends, a hip social life, and a nearly seven-figure job to support it all. London’s position as audit partner at KPMG came with all the perks imaginable. It makes you wonder what it would take for someone to throw all of it away. This is a case about a man who was blinded by friendship. All he wanted to do was help his friend – we can all relate to that.
If you were asked to commit fraud, would you do it? Would you aimlessly follow your boss’s orders like Harold Katz? Or would you follow in Jackie McLaughlin’s footsteps and challenge your boss? Many people find themselves in these unethical situations and a lot of them fall for it. It’s easy to rationalize fraud when your boss asks you to do it. While London wasn’t asked by his boss to commit fraud, he was asked by someone more important to him, his friend.
When Bryan Shaw approached London about his financial troubles, London knew he could help. Shaw’s jewelry business had been struggling and London wanted to help his friend get back on his feet. London began tipping Shaw off on the planned earnings and acquisition announcements of several KPMG clients. This allowed Shaw to play the market advantageously and reap $1.27 million in illegal profits. London was compensated in cash (over $60,000) plus gifts, such as a $12,000 Rolex watch, but none of this compared to how he felt helping his friend.
London said that after the…