Final answer:
The SEC investigated Scott London's dealings with Brian Shaw due to alleged involvement in insider trading.
Step-by-step explanation:
The SEC investigated Scott London's dealings with Brian Shaw because of alleged involvement in insider trading. Scott London, a former partner at KPMG, was accused of providing Brian Shaw with confidential information about KPMG's clients in exchange for cash and valuable items, such as a Rolex watch. Insider trading refers to the illegal practice of trading stocks based on non-public, material information about the company.
The SEC takes insider trading very seriously as it undermines the fairness and integrity of the financial markets. By investigating and prosecuting cases of insider trading, the SEC aims to protect investors and maintain confidence in the market.
In this case, Scott London's alleged involvement in insider trading violated the securities laws, which prohibit the use of non-public information for personal gain in trading securities.