Madoff's Accountant Arrested and Charged
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.
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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.