David Friehling Accuse of Aiding Madoff in Ponzi Scheme

First accomplice named

David Friehling's office

Bernard Madoff’s accountant, David Friehling, has been arrested in relation to the Ponzi scheme that bilked billions out of clients and landed Madoff in jail.

Friehling, sole proprietor of the Friehling & Horowitz, is being charged with securities fraud. He turned himself in to authorities today.

Unwitting participant

Authorities do not accuse Friehling of knowing about the scheme. Rather, they say he certified Madoff’s firm’s financial statements without completing an audit. Accusers say this deceived investors and allowed the scheme to continue undetected because he “rubber stamped” Madoff’s falsified numbers.

A lengthy tenure

Friehling has served as Madoff’s auditor since 1991. Over the past few months a Ponzi scheme that swindled $65 billion out of money manager Madoff’s clients surfaced. Madoff has been convicted on 11 charges, including fraud.

Hefty charges

It’s unknown what kind of bail Friehling is facing, but if it’s anything like the $10 million Madoff is being held on until his sentencing trial, Friehling might have to pay it off in installment loans.

Friehling’s charges include securities fraud, aiding and abetting investment adviser fraud and four counts of filing false audit reports to the Securities and Exchange Commission, according to the U.S. Attorney for the Southern District and the Federal Bureau of Investigation. ... click here to read the rest of the article titled "David Friehling Accuse of Aiding Madoff in Ponzi Scheme"