It’s been a big week for KPMG. They resigned as external audit from Herbalife and Skechers and fired the Senior Partner, Scott London, for insider trading. London had been at the firm for 29 years.
London has been allegedly selling confidential information for the last two years as the Partner in Charge on both client accounts. No one under him is being questioned as he seems to have been working alone.
This allegation led to a halt on stock trading for both the companies. After its lift, Skecher’s stock rose 2.6 percent while Herbalife’s fell modestly.
Both the FBI and SEC are investigating the allegations.
For more information check out this video from CNBC http://www.cnbc.com/id/100627060