Madoff Accountant David Friehling Arrested

by Rachel Nixon | March 18, 2009 at 09:45 am

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David Friehling, Bernard Madoff's long-term accountant has turned himself in and been arrested and charged with securities fraud.

Friehling is the first alleged accomplice to be named in connection with the world's biggest Ponzi scheme.

Friehling, 49, is not accused of knowing about the scheme. Rather, he allegedly deceived investors by falsely certifying that he had audited the financial statements of Madoff’s firm.

“Friehling failed to conduct audits that complied with GAAS and GAAP,” Acting U.S. Attorney Lev Dassin said in a statement, referring to generally accepted accounting principles and standards. “He did little or no testing, no verification of the ‘facts’ he certified. His job was not merely to rubber-stamp statements he didn’t verify.”

Friehling faces up to 105 years in prison if convicted.

In the meantime, Madoff is trying to get out of jail again, having been locked up since March 12th when he pleaded guilty to all 11 counts relating to his Ponzi scheme.

But Madoff believes he should get out of jail until June 16, when the 70-year-old faces sentencing of up to 150 years. On Thursday morning, he is scheduled to appear in the U.S. Court of Appeals for the 2nd Circuit to appeal the revoking of his $10 million bail.