Wednesday, March 18, 2009


Federal prosecutors have charged Bernie Madoff's longtime accountant with fraud, so when are they going to charge Bernie's wife!? Hell, she worked in Bernie's office, and she can't tell me she didn't know about the ponzi scheme!
*Note to self: Don't hold breath on this one, either.

From the Associated Press via Yahoo News:

Prosecutors charge Madoff's accountant with fraud

NEW YORK – Bernard Madoff's longtime accountant was arrested on fraud charges Wednesday, accused of aiding the man who has admitted cheating thousands of investors out of billions of dollars in the past two decades.

The charges against David Friehling, 49, come as federal authorities turn their attention to those who they believe helped Madoff fool 4,800 investors into thinking that their longtime investments were growing comfortably each year.

Friehling ran an accounting office in a nondescript suburban building north of New York City, and quickly drew scrutiny. Experts in accounting said it would be preposterous for such a tiny firm to audit properly an operation the size of Madoff's.

He had served as Madoff's auditor from 1991 through 2008 while he worked as the sole practitioner at Friehling & Horowitz. He was paid a tidy sum by Madoff: Prosecutors said he made between $12,000 and $14,500 a month from 2004 to 2007. That works out to $144,000 to $174,000 a year.

Friehling faces up to 105 years in prison if he is convicted. He is charged with securities fraud, aiding and abetting investment adviser fraud and four counts of filing false audit reports with the U.S. Securities and Exchange Commission.


Acting U.S. Attorney Lev L. Dassin said in a release that Friehling is not charged with knowing about Madoff's Ponzi scheme.

However, Dassin said: "Mr. Friehling's deception helped foster the illusion that Mr. Madoff legitimately invested his clients' money."


The SEC accused Friehling of lying to the American Institute of Certified Public Accountants for years, denying he conducted any audit work, because he was afraid that his work for Madoff would be subject to peer review.

Prosecutors said that as far back as 1995, Friehling failed to maintain professional independence from Madoff. They said he or his wife had an account with Madoff that exceeded $500,000, the maximum amount under SEC rules that an auditor can invest with a client and still maintain independence.

The strain of the Madoff scandal on Friehling began to show in recent months as he put his luxury home in Rockland County on the market.

A listing posted on the Web site of Prudential Rand Real Estate said the family is seeking $995,000 for the five-bedroom Colonial. The home was built in 1990 and has a swimming pool and 4,437 square feet of space.

I think the Feds should seize that five-bedroom Colonial. I'm sure there are people who feel they should benefit from the sale of that home.

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