Indianapolis Lawyers , Louisville Lawyers
Madoff's accountant charges with securities fraud
David Friehling, Bernie Madoff's accountant for 17 years, has been charged with securities fraud, a federal prosecutor said Friday.
Lev Dassin, acting U.S. attorney for the southern District of New York, said the charges include aiding and abetting investment adviser fraud and four counts of filing false audit reports with the SEC.
Friehling, who was Madoff's auditor from 1991 to 2008, pleaded not guilty, the Associated Press reports. The AP also says that a federal judge has granted prosecutors more time to negotiate a possible plea bargain with Friehling.
The criminal information alleges that Friehling "falsely certified" that he had prepared and audited financial statements for Madoff's investment company, including balance sheets, statements of income, statements of cash flows and reports on internal control.
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,
Madoff is now serving a 150-year sentence at a prison in North Carolina for operating a Ponzi sche