Madoff accountant to plead guilty

Friehling reaches deal in fraud case, prosecutors say; expected to plead guilty Nov. 3.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Aaron Smith, CNNMoney.com staff writer

friehling_court_sketch.03.jpg
David Friehling, right, is expected to plead guilty for charges related to Bernard Madoff's Ponzi scheme.

NEW YORK (CNNMoney.com) -- David Friehling, the long-time accountant for Ponzi schemer Bernard Madoff, is expected to plead guilty to fraud charges next week, in a deal with federal prosecutors.

In a letter to Judge Alvin Hellerstein of U.S. District Court in Manhattan, prosecutors said they expect Friehling to plead guilty on Nov. 3 "in pursuant to a cooperation agreement with the government."

Frieling, who operated out of an office in New City, N.Y., about 20 miles north of New York City, is accused of "rubber stamping" Madoff's books. Prosecutors have said that Friehling's "deception helped foster the illusion that Mr. Madoff legitimately invested his client's money."

Friehling has been charged with seven counts, including securities fraud and false filing with the Securities and Exchange Commission, which each carry a maximum sentence of 20 years and fines of up to $5 million. Friehling, 49, could face up to 105 years in total.

Friehling's lawyer Andrew Lankler declined to comment to CNNMoney.

Madoff, 71, pleaded guilty in March to 11 federal counts related to his long-running Ponzi scheme and is serving a 150-year sentence at Federal Correctional Institution Butner in North Carolina.

Madoff's scheme resulted in losses of more than $19 billion to thousands of investors, according to the court-appointed trustee Irving Picard. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
My part-time job is a dead end, but it's all I can find CNNMoney profiles 4 of America's 7 million part-time workers unable to find full-time jobs. More
Cool cars from the LA Auto Show There are some of the standout vehicles on display this year at the Los Angeles Auto Show. More
American Dream homes: Prices in 10 cities How much does the American Dream home cost? From $2 million in Los Altos, Calif., to $65,000 in Cleveland, here's what you'll pay for a 4-bedroom, 2-bath house, according to Coldwell Banker's annual survey. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.