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Bernard Madoff is no longer the lone ranger in the world's biggest Ponzi scheme, his accountant, David Friehling, was arrested March 17th for his part in the notorious $65 billion investment fraud. The accountant repeatedly signed off on Madoff's bogus financial reports, helping the fraudster continue his scheme.

Friehling was not charged for knowledge of the investment fraud, but for fallaciously certifying that he audited Madoff's financial statements. According to Acting U.S. Attorney Lev Dassin, "Mr. Friehling's deception helped foster the illusion that Mr. Madoff legitimately invested his clients' money."

Friehling turned himself in to authorities and was charged with aiding and abetting, investment advisor fraud, and four counts of filing false statements with the U.S. Securities and Exchange Commission. The 49-year-old could face 105 years in prison for his actions.

Friehling was paid anywhere from $12,000 to $14,500 per month between 2004 and 2007, by Madoff's firm. Also, Friehling and his wife invested with Madoff and had an account of more than $500,000.

Investment Fraud Attorney

Recovering lost investments in a massive scheme like Madoff's can be extremely difficult. Our team of securities attorneys has the skill and experience needed to recover your funds.

If you have lost money in the Madoff investment fraud, contact a securities attorney at Arnold & Itkin LLP for a free evaluation of your case.

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Government officials plan to seize Bernard Madoff's assets. Gradually, prosecutors are identifying Madoff's many assets and filing that they intend to seize them. Madoff, the perpetrator behind the world's largest Ponzi scheme, admitted March 12th to the $65 billion scheme and is now behind bars, awaiting sentencing on June 16th.

According to the Houston Chronicle, Nearly $100 million in assets owned by Madoff and his wife Ruth have been identified and are subject to seizure in the near future. The $100 million includes: real estate, cash, bonds, automobiles and boats. Also up for seizure is the Madoffs' $7 million Manhattan apartment and their homes in New York, Florida and France.

Prosecutors also plan to seize assets in Ruth Madoff's name including: $17 million cash and $45 million in bonds. The Madoffs' lawyers insist Ruth is the sole owner of the cash, bonds and Manhattan apartment and that they are not related to her husbands $65 billion Ponzi scheme. In addition, loans given to the Madoffs' sons, Mark and Andrew, adding up to nearly $32 million are on the list of assets to be seized.

Prosecutors have yet to actually file a seizure request. They have filed a "notice of intent" to seize the assets, warning the Madoffs, their team of attorneys and Judge Denny Chin of the upcoming request.

On December 31, 2008 the Madoffs claimed they were worth $826 million, $700 million of which was Bernie's ownership in Bernard L. Madoff Investment Securities. Recently, however, outside evaluators value the company at only $10 million.

Investment Fraud

Our team of securities attorneys has the expertise and experience necessary to take on crooks like Bernie Madoff and have helped many families recover from the financial burden brought on by such schemers.

If you or a loved one has lost investments in the Madoff Investment Fraud or any other investment scam, contact a securities attorney at Arnold & Itkin LLP for a free consultation of your case.

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Bernard Madoff, the man who swindled thousands out of $65 billion, plead guilty to 11 criminal charges on March 12th and was sent to jail. Others are being investigated, but no charges have been filed.

Thursday morning, Bernie Madoff appeared in front of U.S. District Judge Denny Chin and plead guilty to his $65 billion Ponzi scheme. As victims looked on from the gallery, he apologized for his wrongdoing explaining "as years went by, [he] realized [his] arrest and this day would inevitably come." One by one, Madoff plead guilty to 11 criminal charges:

• Securities Fraud
• Investment Advisor Fraud
• Mail Fraud
• Wire Fraud
• International Money Laundering to Promote Specified Unlawful Activity
• International Money Laundering to Conceal and Disguise the Proceeds of Specified Unlawful Activity
• Money Laundering
• False Statements
• Perjury
• Making a False Filing with the SEC
• Theft from an Employee Benefit Plan

The 70-year-old faces 150 years in prison for the charges.

In his apology, he maintained that his brother and sons had no role in the scheme and explained that he began getting results for his clients "at any cost" in the early 90's, during poor economic times. After months of investigation, however, SEC officials believe he began the scheme in the 80's.

Earlier in the week Madoff refused to agree to a plea deal with prosecutors and admit to conspiracy, implicating others. Because of his refusal investigators will have no help in identifying others involved in the scheme. According to Dr. Michael Welner, forensic psychiatrist, "the old man falls on his sword" attempting to take the blame for all and save the others involved in the fraud.

Madoff's attorney asked that he be put back on house arrest, but Judge Chin sent him straight to jail saying "he has the incentive to flee" and "the means to flee." SEC officials have located an estimated $950 million of Madoff's assets and continue to search for other funds they are sure he has hidden.

Prosecutors want Madoff to pay $170 billion in restitution to satisfy the 5,000 clients and 13,567 accounts he defrauded.

Ponzi Scheme Attorneys

Getting through the tough financial road that follows after being duped by an investment fraudster can be extremely difficult. Our team of securities attorneys has helped many people get back on their feet in the wake of an investment fraud emotionally and financially.

If you have lost money due to Bernie Madoff's Ponzi scheme or any other investment fraud, contact a securities attorney at Arnold & Itkin LLP for a free evaluation of your case.

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Investors who lost money in the Bernie Madoff investment fraud were shocked by what they heard at the very first investors' meeting last week – there is evidence to suggest that Madoff bought no securities and made up monthly statements sent to customers.

At least 300 investors with their investment fraud lawyers gathered in Manhattan at a meeting that was meant to calm panic-stricken investors, but ended up doing just the opposite. According to Irving Picard, who was appointed as a trustee by the court and given the responsibility of overseeing the sale of Madoff’s assets in order to pay his victims, there is evidence that the shamed money manager bought no securities for his customers over a period of 13 years, at least. In short, he only used investor money to pay off other investors in a classic Ponzi scheme. Needless to say, this revelation has only added to investors' fears. The meeting was attended by several investors, many of them senior citizens who have been milked off their entire life savings to the tune of millions of dollars each. Several of them have been forced to sell their homes and go back to work in an effort to financially cope with their losses.

There was at least one ray of hope for frazzled Madoff investors. Picard confirmed that he was able to generate funds, amounting to $650 million from Madoff asset sales. He expects to recover $950 million in all to help compensate customers who submit claims before the July 2nd deadline. These claims are in addition to the $500,000 that each investor is eligible for from the Securities Investor Protection Corporation.

For many investors, another concern has raised its head; investors who have received significant returns from their Madoff account over the years may have to return it in what is known as a “clawback.” These investors may find that the returns they enjoyed for so many years are not really theirs, because the accounting statements were bogus and no investments were actually made in their name. Simply put, these investors did not receive “returns”, they only received other investors' money. It is a bitter pill to swallow and thousands of investors will be looking at more painful days in the  months ahead. Nearly 2350 investors have filed claims to recover funds as of now. Across the spectrum of victims, which includes philanthropists, entertainers and retirees, one feeling runs high – they have been let down not only by Madoff, but by the Securities and Exchange Commission which failed to act on whistleblower efforts to bring the ongoing fraud to their attention.

Investment Fraud Attorneys

The process of recovering funds from an investment fraud can be daunting. It takes time, effort and expertise that stressed securities fraud victims don't typically have. Our team of securities attorneys has the expertise and experience it takes to get you the compensation you deserve.

If you have lost money in the Madoff Ponzi scheme, contact an experienced securities attorney at Arnold & Itkin LLP for a free consultation.

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