Madoff’s Accountant Charged With Fraud
March 18th, 2009 at 2:55 pm - by admin
David Friehling, 49, twenty year-accountant for the now-infamous Ponzi scheme extraordinaire Bernard Madoff, was charged Wednesday after prosecutors in the case worked on increasing the scope of their investigation.
The charges: securities fraud (for improper auditing procedure), aiding and abetting investor securities fraud, and filing knowingly-false regulatory reports could put Friehling in jail for up to 105 years, if convicted.
“Friehling essentially sold his license to Madoff for more than 17 years while Madoff’s Ponzi scheme went undetected,” said James Clarkson, director of the New York regional office of the S.E.C., who filed separate civil charges against him and his firm today.
Friehling’s contributions to the massive fraud allowed Bernard Madoff to falsely represent the legitimacy of his firm.
“As the new Chairman [of the S.E.C.], I will ensure that we continue this investigation and hold accountable all those who helped to facilitate this massive fraud,” said SEC Chairman Mary L. Schapiro.
Mr. Friehling was paid just under $200,000 per year in fees from Bernard Madoff Investment Securities, as well as fees for services provided to Madoff and his family. The complaint alleges that this approached $14 thousand per month in recorded fees.
Similar charges were also filed against Friehling’s firm, Friehling & Horowitz, CPAs, P.C.
