Prosecutors Near Deal with Madoff Accountant

Friehling is the only other person charged in the ponzi scheme

Updated 8:09 AM EST, Thu, Jul 16, 2009

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Federal prosecutors in Manhattan have signaled they may be near a plea deal with Bernard's Madoff longtime accountant.

The prosecutors notified the court on Wednesday they intend to file a document that would allow David Friehling to plead guilty in the case instead of being indicted. The move often signals that a defendant has agreed to cooperate with investigators as part of plea deal.

Both prosecutors and Friehling's attorney wouldn't comment on Wednesday.

In March, Friehling became the only other person besides Madoff charged in the massive Ponzi scheme. He was accused of failing to do basic auditing that would have shown Madoff wasn't investing in securities.

Meantime, numerous real estate agents are meeting with U.S. Marshals at the Upper East Side penthouse that used to belong to Bernie Madoff and his wife, Ruth a spokesman for the U.S. Marshals service said.

The Marshal's Service is looking to select an agent to list and sell the apartment, the spokesman said.

Agents soon will also be invited to tour the Montauk and the Palm Beach estates as Marshals seek listing agents for those properties as well, the spokesman said. It is unclear when a realtor for each property will be selected or when the properties will be put up for sale.

First Published: Jul 15, 2009 4:27 PM EST

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