Madoff CPA David Friehling Pleads Not Guilty

Submitted by Melissa Hoffmann on Fri, 07/17/2009 - 14:55

Madoff accountant David G. Friehling didn't plead guilty today as expected after prosecuters announced their intention to file a criminal information against him Wednesday.

He pleaded not guilty to fraud charges linked to Madoff's vast Ponzi scheme.

However, according to Bloomberg News, today's plea could be a prelude to a guilty plea later.

By waiving indictment and instead being charged in a criminal information, the legal process becomes easier for prosecutors, who no longer have to vet their evidence before a grand jury. It is a step often taken in cases where a plea bargain is likely.

Friehling was accused in the criminal information of securities fraud and investment-adviser fraud and four count of making false filings with the Securities and Exchange Commission.

He remains free on $2.5 million bail.

Friehling, 49, was arrested for securities fraud in March. He isn’t accused of knowing about Madoff’s scheme, but stands accused of deceiving investors by falsely certifying he audited the financial statements of Madoff’s firm.

His next court date is Oct. 1.

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