NEW YORK, July 17, 2009
Madoff Accountant Pleads Not Guilty
But Judge Gives Prosecutors More Time To Work Out Deal with Con Man's Longtime Auditor
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Bernard Madoff's accountant David Friehling exits Manhattan federal court, July 17, 2009, in New York. (AP Photo/Louis Lanzano)
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Photo Essay Sketches: Madoff Sentencing A courtroom eye view of the sentencing of Bernie Madoff
Accountant David Friehling pleaded not guilty Friday to charges including securities fraud and filing false reports with the Securities and Exchange Commission.
Prosecutors said Friehling rubber-stamped Madoff's books for 17 years without confirming their accuracy. He is the only person besides Madoff facing criminal charges so far in the case.
Friehling also waived his right Friday to have a grand jury consider his case, a step often taken in cases where a plea bargain is likely. He had been charged previously, but had not yet entered a formal plea.
The accountant and his attorney, Andrew Lankler, declined to answer questions following the brief hearing at the U.S. District Court in Manhattan.
His next scheduled court appearance is in October, a date set after assistant U.S. Attorney Lisa Baroni asked for more time to discuss a "possible disposition" to the case with the defense.
Friehling was Madoff's auditor from 1991 to 2008. He supposedly audited Madoff's multibillion dollar investment advisory business from a small office with a bare-bones staff in suburban New City, N.Y., an arrangement that made a few savvy investors suspicious for years.
Authorities say if Friehling had done his job, Madoff's financial statements would have shown his company owed billions of dollars to customers and was insolvent.
The 71-year-old Madoff pleaded guilty in March to charges that his investment business was a scheme. Madoff is now serving a 150-year sentence at a prison in North Carolina.
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- Don't let this guy go!! He probably knows where all of the money is. And how much was he paid for his rubber-stamping services -- might as well take any and all of his money, too.
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- Well, that's the big question! Whether he knows where any of the stolen loot went to?! Madoff probably didn't tell him, but authorities will ask him FOR SURE!
Yeah, he APPROVED the books for 17 years?! He's a crook, alright!
He should get at least the same as Madoff got, if not more!
Really, they both should be doing HARD TIME in a REAL prison, not
a minimum security condo!
- Well, that's the big question! Whether he knows where any of the stolen loot went to?! Madoff probably didn't tell him, but authorities will ask him FOR SURE!
- I say throw away the key on this guy. He is as guilty as Madoff-sad, he was a CPA-how did the AICPA allow scum like this to thrive?
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- Wonder if the accountant will get the sweet deal Madoff got. Sent to the luxury club fed in NC. College campus style prison facility. Freedom to roam the grounds as he pleases all he has to do is show up for head count.
Cafeteria style chow lines with choices of what you want to eat. He is allowed daily visits from his wife and family.
This is not prison this is the Hilton with a concertina wire topped fence.
The victims should demand of the senators and representative to have him transferred to the super max in Colorado,He deserves the worst of living conditions as this is what he has done for his victims. They went from being able to retire in comfort to losing it all and being sentenced to the prison of poverty. - Reply to this comment
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