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NYC accountant is arrested in Madoff fraud

A senior partner at a New York accounting firm has pleaded not guilty to federal charges that he aided financier Bernard Madoff in his epic fraud.

Paul Konigsberg entered the plea Thursday at an arraignment on five charges that he conspired with Madoff and helped him lie to investors.

He's accused of participating in and helping to direct false bookkeeping. Prosecutors say he is the only person outside the Madoff family to have held an ownership interest in Madoff's private investment business.

Konigsberg's lawyer tells a magistrate judge that his 77-year-old client was unaware of Madoff's Ponzi scheme.

Konigsberg has been released on $2 million bail.

Madoff is serving a 150-year prison sentence after admitting his fraud in 2009.