The defining moment in the KPMG insider-trading scandal took place over coffee at a Starbucks in the San Fernando Valley, where Scott London, the accountant at the center of the case was set up by his longtime friend.
The sting that nabbed London demonstrates the lengths to which the government is going in pursuit of wrongdoers large and small. As part of an intensive dragnet, securities regulators have stepped up measures in recent years to root out insider trading. They've enlisted stock exchanges and brokerage firms to aid the cause.
"I would call it a crusade," said Ernest Badway, a former SEC enforcement attorney who is now a defense attorney in New York. "This is something they just are locked onto — almost with a religious fervor — and they are not going to let it go, at least in the near term."
Previously published by Los Angeles Times
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