The prosecutors notified the court on Wednesday they intend to file a document that would allow David Friehling to plead guilty in the case instead of being indicted. The move often signals that a defendant has agreed to cooperate with investigators as part of plea deal.
Both prosecutors and Friehling's attorney wouldn't comment on Wednesday.
In March, Friehling became the only other person besides Madoff charged in the massive Ponzi scheme. He was accused of failing to do basic auditing that would have shown Madoff wasn't investing in securities.
Madoff was sentenced last month to 150 years in prison.