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.
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