David Friehling, Bernard Madoff’s accountant, arrested
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.
Friehling was sole proprietor of the Friehling & Horowitz accounting firm. The firm occupied a 550-square foot space in New City, a northern suburb of New York City in Rockland County, and served as auditor to Bernard L. Madoff Investment Securities since 1991, prosecutors said.
Friehling, 49, is not accused of knowing about the scheme. Rather, he allegedly deceived investors by falsely certifying that he had audited the financial statements of Madoff’s firm. Besides securities fraud, Friehling is charged with aiding and abetting investment advisor fraud and four counts of filing false audit reports with the SEC.
“Friehling failed to conduct audits that complied with GAAS and GAAP,” Acting U.S. Attorney Lev Dassin said in a statement, referring to generally accepted accounting principles and standards. “He did little or no testing, no verification of the ‘facts’ he certified. His job was not merely to rubber-stamp statements he didn’t verify.”
Defense attorney Andrew Lankler declined to comment. Friehling, who faces a maximum 105 years in prison, will appear in Manhattan federal court later today after surrendering to authorities this morning.
