Madoff Accountant Pleads Guilty

Submitted by Melissa Lajara on Tue, 11/03/2009 - 11:26

David G. FriehlingIt's official, according to several news sources: The long-time outside accountant to Bernard Madoff has pleaded guilty to securities fraud.

David G. Friehling is accused of abetting Madoff by allegedly filing false audit reports about Madoff's investments without performing any actual audit. In addition to securities fraud, he was charged with investment adviser fraud, making false filings to the Securities and Exchange Commission and obstructing the IRS. The charges reportedly carry a potential prison term of 108 years.

With his confession in federal court in Manhattan, Friehling became the third person to plead guilty in the fraud, one of the largest Ponzi schemes in history, with thousands of victims and at least $21.2 billion in cash losses.

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