brian shaw, who was the tippee in that case. we have the u.s. istrict of california who filed this complaint against shaw. it is a 27-page complaint. aunled draw joins us live from l.a. welcome, sir. let's get right to it. what is your ace in the hole here? we've seen a photograph of money being handed over. you have a helpful witness in brian shaw. is that it and where do you feel is the true smoking gun? >> you described what was relayed in the complaint and as well the documentary evidence. we believe that we have sufficient evidence to go forward in the case and obtain a conviction beyond a reasonable doubt. at this stage i can't comment any further as what more will be revealed but we, we tend to bring charges when we have the evidence. liz: there is some pretty good evidence in here, mostly, in my opinion, although you could educate me more, from wiretaps. can you just explain to us how this was used as a tool for this case? >> well, look i'll tell you generally speaking the government and our partners at fbi and sec use variety of differen

access to confidential information on companies like sketchers, herbal life, gives tradeable info to brian shaww had been crying that his jewelry business was struggling. that information nets shaw over $1 million in illegal trading. the federal prosecutor got wind of it and sprung into action. i spoke with that prosecutor yesterday on this program. >> insider trading gives the public the impression that the system is rigged in favor of the wealthy or the privileged. someone has to be there to be a gatekeeper. that's where the department of justice, the s.e.c. and fbi come in. >> absolutely agree, but if we want to make sure people know it's not rigged, why is he apparently going after the leaker harder than the guy who made all the money on trading illegal information? i understand that the kpmg employee needs to be held to a higher standard. he is entrusted with classified information and his betrayal cannot be treated lightly but neither should what shaw did. when i asked the prosecutor if he was giving a deal, it seems he won't have the book thrown at him nearly as hard as london. he pocket

the sec has charged scott london and his friend brian shaw with insider trading. about that. in recorded conversations, london told shaw specific details. >> zuckerberg saying we have a strange immigration policy for a nation of immigrants and it's a policy unfit for today's world. we need a new approach including comprehensive immigration reform with effective border security that allows a path to citizenship that let's us attract the hardest working people, no matter where they were born. we invited mr. zuckerberg to join us but the company said there are no additional comments and the op ed speaks for itself. >> a lot riding on the whole immigration debate. that's why zuckerberg wrote this op ed. >> who said, obviously, there are not enough u.s. citizens for the jobs they had to fill. take a listen. >> on our website, we have job openings for more than 800 engineers that people can go and apply for. we want them to, if they're qualified for these jobs. we can't find enough workers. so we really need to fill that gap and having a working immigration system is an

here we have got the charges on london but brian shaw, what happens to him? because he's the guy who made more than $1 million. i wonder if he did a deal with the government to lessen his sentence. i say you want to say the market's not rigged? that feels like it is. they're wealthy guys. you hear that shaw had business problems. >> london i don't understand other than a lot of these guys hang out with rich people. they were members of the golf club. london was only getting 10% of the profits of the trading and a rolex. he could have at least held out for a better watch. >> you will hear from rolex now. >> he wasn't making all that money. so it's this upward mobility, this quest to be among the truly wealthy. he's a kpmg guy and wanted to improve his life. >> he thought he made -- he just learned today that it wz a million dollars in profit. >> let's go out to jane wells. she is going to fill us in on what the latest is. jane? >> i got the north ridge country club where this whole thing started. one of the members just walked by and said he had played golf wi

london accepted a total of 50 grand in cash and gifts from friends, and earlier we spoke with brian shaw's attorney. >> when mr. shaw came in at the beginning of this year, 2013, he came in without any deals. and he decided to go forward with the government, fully, completely and truthfully. to date, he has no deals. no deals with the s.e.c., no deals with the u.s. department of justice or the fbi. >> one of the more interesting exchanges involved herbalife. he said that it should beat earnings in february, but he was concerned about hedge fund manager bill accidekman driving price down and then shaw told london, i wish you would have known he was going to release that, we could have made some money. london responded, yeah, that would have been nice. both men have admitted that they regret their actions, shaw calling his stupid. we will have to see if that draws leniency from authorities. jane wells from los angeles. >> certainly mr. london faces jail time if this is prove. i scratch my head. what were they thinking when they went into this? >> one case after another. we see the headlines,

the fbi says this photo shows london accepting $5,000 in cash from jeweler brian shaw, his friend, whichgedly believed was his cut from profits made on a tip he gave about deckers outdoors, which sells uggs. the fed claims tips like this made shaw more than $1 million in illegal profits before the fbi confronted him and he agreed to work with authorities. london faces five years in prison and hefty fines if convicted. despite what is thought to be a pretty nice income, the feds claim he accepted a total of $50,000 in cash and gifts from his friend. earlier, we spoke with brian shaw's attorney, who says his client will soon disgorge all of his ill-gotten gains. here's more of what he told us. >> mr. shaw came in at the beginning of this year, 2013, he came in without any deals. and he decided to go forward with the government fully, completely, and truthfully. to date, he has no deal. >> reporter: all right. one of the more interesting exchanges involves herbalife. first, the two men allegedly discussed rumors, and i should say, rumors, only that herbalife might go private. but then later

but brian shaw said scott london was being too generous in his kickbacks if the auditor still took theme didbits from the criminal complaint. when shaw offered over the phone to play london some cash, quote, london told shaw that you don't need to do that. and shaw responded that he would feel better just because we haven't done anything in six or seven months. that was followed by two encounters between the two men which the fbi witnessed. shaw gave london $5,000 in cash in bags. the second time after he profited from a tip, he apologized to london that he didn't have more money at the time. end quote, london told shaw not to worry and to keep the money stating they would figure out out later, another time. nevertheless, london accepted the envelope of the $5,000 from shaw. london got between $35,000 and $50,000 in cash and gifts while brian shaw reaped more than $1.2 million in ill-gotten profits. back to you. >> jane, how dumb is london? i mean, this guy, what, that envelope for $5,000, is that where the picture came from that everyone is looking at between the cars? this guy, he did

brian shaw very regrettably and very unfortunately took that information, traded on it illegally andl suffer the civil and criminal consequences for his actions. liz: how did they catch him? we say it was frozen a while back but what tipped the sec off? >> we don't know exactly what tipped off the sec and in many cases they send out subpoenas hoping they will get some information, and a lot of times they don't. in this case immediately after getting the sec subpoena, he contacted counsel, myself, and it bold and courageous decision before any investigation had occurred he would go to the government and fully, completely and truthfully tell them the entire story. it was an incredibly difficult decision, but mr. shaw stepped up and made that decision and engaged in an undercover investigation that led to the criminal complaints you have before you. liz: that is what i want to finish with, what was like for your client to wear a wire tap. it is a whole different ball game in real life, that must have been somewhat dramatic. >> mr. shaw had no contact with the criminal justice system, ne

in this picture, london is allegedly receiving one of several $5,000 payments from his friend brian shawe information. he typically paid about 10%. paid in cash, jewelry and more. london and shaw are both charged with insider trading in separate complaints. we already heard that it involved herbalife and sketchers. they complained as much about the alleged discussions. london is said to have discussed rumors and he also allegedly told shaw at first to stay away from the company once bill akman made a short bet but later lamented that he should have bought earlier. mandy, back to you. >> thank you very much. what we know so far, maryland is doubling down on jobs by expanding one of the east coast largest casinos. let's get back to our live source outside of baltimore. >> we are outside of baltimore and inside the maryland live casino. this is the gambling floor and it's day one here for table gaming. they had slots here for a long time. as of midnight they began the table gaming, blackjack and the like. paying a million $s a day of that to the state of maryland in taxes. they will be able

i spoke in a fox business exclusive to the lawyer representing brian shaw of what it was like for his client to turn and work with the government in a wiretap. >> to get in with the fbi to do this is extremel extraordinarily difficult for someone, but he knew that is what it needed to make it right. liz: so far he has not been charged, but scott london has been. from a regular investor standpoint, you have got snow stuff is going on. the sec trying to catch people red-handed. just looking at the market, down 28 points, while also the lows of the session and we have 47 minutes left of trading. jpmorgan and wells fargo continue to fall it reported earnings this morning but forget the headlines you saw. we're digging into the numbers to find the most important notes they have revealed. what you need to know if you own the stock. in the last three days how many times have you struggled to hear people talk about these bitcoin. you cannot ouch them or feel them. have you been following the frenzied trade? like the wild west of investing. the currency cannot see or touch, but people are maki

that friend, brian shaw, says he received that information, says it in a statement, and that he profitedit. shaw's jewelry business is inside this building. we have reached out, spoken to his attorney, as well. i will have more information next hour. but again, we are expecting today according to a source familiar with the situation that federal cell charges will be filed against scott london. >> jane, thanks so much. following a story we continue to keep an eye on. >>> yum brands says sales in china fell 13% during march. and are continuing to be impacted by the latest bird flu outbreak. >> yeah, and the stock was -- the price target at morgan stanley was account from 80 to 75. obviously with asian flu or the bird flew, kfc doesn't look attractive. >> how about blackberry. amazon selling the bb 10 for as lows as $99.99 with is service agreement. >> banking community came to love the stock out of nowhere and now they're pulling back. look at the cure price action. it makes the high in early january ahead of the launch but has not been able to take it out again. it looks to be technically

to be $50,000 in cash and gifts when you total it all up, from his country club golfing buddy, brian shaw, in exchange for tips on firms that kpmg was working with. let's look at some of those companies. the companies london was accused of trading nonpublic information on include herbalife, sketchers, deckers outdoor, all based in southern california, as well as allegedly ticking shaw off ahead of two mergers, rsc holdings by united rentals and pacific capital by union bank, to a total of illicit profits to shaw of $1.2 million. shaw, when confronted, began cooperating with the fbi in the sting operation against london. he told the fbi that london always told shaw he was very jitterous in the gifts he was giving and he didn't have to, but he didn't turn those gifts down. and when he was alerted he was going to put a hold in his account, the criminal complaint said, "shaw said that london reassured him that there was no reason for concern and explained 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."

brian shaw has yet to be charged. so what about the money he made?t future mr. shaw will be disgorging all his profits as part of any resolution, i imagine with the sec and the u.s. department of justice. ? and to scott london faces future court action not just from the feds and the kpmg's chairman and ceo says he is appalled at the details and that firm is planning legal action. guys? >> we should say david faber is flabbergasted that everybody's going on the record. >> jane, have you ever had a lawyer say something like that and get every detail of what they were doing and where they were doing? >> let me tell you, i've covered a lot of legal cases in this town. harmen braun goes way back. i asked him yesterday, and have you ever had a client admit everything, plead guilty before he's even been in court. i can't really think about it, but his explanation is that scott london wanted to get ahead of this to protect the firm so that people wouldn't think that it was a kpmg problem that any of these audits were at risk and it was all a scott london pro