Madoff Accountant Set to Make a Deal

By Jonathan Dienst
|  Friday, Oct 30, 2009  |  Updated 1:01 PM EDT
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Madoff Accountant Set to Make a Deal

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David Friehling, Madoff's longtime accountant, has been charged with securities fraud.

The long-time outside accountant to Bernie Madoff is now cooperating with prosecutors and is expected to plead guilty to securities fraud and other charges on November 3. 

Prosecutors wrote Judge Alvin Hellerstein a letter stating that David Friehling "will plead guilty to the information pursuant to a cooperation agreement with the government."

Friehling, who helped run a small accounting firm in Rockland County, is accused of helping Madoff get away with the $50 billion fraud for so long by allegedly filing false audit reports about Madoff's investments without performing any review. 

In addition to securities fraud, Friehling is also charged with investment adviser fraud, making false filings to the Securities and Exchange Commission and obstructing the IRS.
 
Friehling becomes the second known Madoff associate to cooperate in the investigation. Madoff's right hand man Frank DiPascali pleaded guilty and is hoping for a reduced sentence by helping the FBI track others involved. 

DiPascali is behind bars as prosecutors try to convince a judge to let the convicted co-conspirator out on bail so he can more easily assist the investigation.  

Madoff remains behind bars on his 150-year prison sentence.

 
 

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