Results tagged “davidfriehling”

David Friehling, who was in charge of auditing Bernard Madoff's billion dollar "business"/Ponzi scheme from a little accounting office in a Rockland County strip mall, pleaded guilty to securities fraud charges for not verifying Bernard Madoff's trades and assets. The 49-year-old said, "At no time was I ever aware Bernard Madoff was engaged in a Ponzi scheme," and said his own family's savings (and kids' college funds)—which is also an SEC violation— were put into Madoff's scheme, while also admitting he took Madoff's records "at face value."

David Friehling, the accountant who helped Bernard Madoff perpetuate his $65 billion Ponzi scheme by filing fake audit reports, has pleaded not guilty to fraud charges. However, he may be pleading guilty later down the road. Federal prosecutors and Friehling, who waived his right to a grand jury, are discussing a "possible disposition." Bloomberg News says Friehling's moves today are a "likely a prelude" to a guilty plea. A lawyer not associated with the case said, "There is nothing to be gained for Mr. Friehling to waive indictment except to placate prosecutors who are no doubt pressing him to plead guilty and cooperate with them in their investigation. It is the accountant who knows where the bodies are buried." Friehling, who is free on $2.5 million bail, and his family had accounts with Madoff (an SEC violation) and withdrew millions since 2000.

Bernard Madoff's accountant was (finally) charged with helping the fallen financier run his Ponzi scheme. David Friehling was "charged with securities fraud, aiding and abetting investment adviser fraud and four counts of filing false audit reports with the Securities and Exchange Commission," according to the Wall Street Journal. Friehling, the first arrest aside from Madoff's in the case, made his $2.5 million bail after the hearing.