Bernard Madoff may be in jail awaiting sentencing and transfer to a federal prison, but thus far his comrades in crime seem to have avoided accountability.
This changed this morning when David G. Friehling, the accountant who headed the auditing firm charged with scrutinizing and verifying Madoff's financial statements was charged in a six-count criminal complaint.
From the New York Times:
Madoff Accountant Faces Charges
By WILLIAM K. RASHBAUM
Published: March 18, 2009
The accountant who provided auditing services to Bernard L. Madoff’s investment advisory business for more than a decade, operating out of a tiny storefront office in Rockland County, was charged on Wednesday with securities and investment adviser fraud in connection with Mr. Madoff’s vast Ponzi scheme.
The accountant, David G. Friehling, who became Mr. Madoff’s primary auditor in the early 1990s when his father-in-law retired and he took over the then-two man firm of Friehling & Horowitz, surrendered to federal authorities and prosecutors on Wednesday morning, according to a person briefed on the matter.
From Bloomberg News:
Madoff Accountant Friehling Arrested in Ponzi Scheme
By David Glovin, David Voreacos, and David Scheer
March 18 (Bloomberg) -- David Friehling, Bernard Madoff’s accountant, was arrested and charged with securities fraud, the first accused accomplice to be named by authorities in connection with the money manager’s $65 billion Ponzi scheme.
(snip)......
Friehling, who faces a maximum 105 years in prison, isn’t accused of knowing about the scheme, Acting U.S. Attorney Lev Dassin said in a statement. Rather, he allegedly deceived investors by falsely certifying that he had audited the financial statements of Madoff’s firm, Bernard L. Madoff Investment Securities.
Chances are that as the investigation continues we'll see more perp walks. One can only hope!