Madoff’s Accountant Pleads Not Guilty
July 17, 2009 by Mark Ellis
Filed under Business
Bernard Madoff was recently sentenced to 150 years in prison for committing the largest case of investment fraud ever perpetrated by a single person. However, his accountant, David Friehling, has maintained that he is innocent of any wrongdoing, despite the fact that he is the only other person besides Madoff to be charged in the multi-billion dollar fraud case.
The prosecution in the case has alleged that Friehling was responsible for verifying the transactions at Madoff’s fraudulent investment firm, but that he also failed to realize that Madoff was committing false transactions. This lack of oversight allowed Madoff to swindle millions of dollars from his clients in a textbook pyramid scheme.
Friehling was expected to plead guilty as part of a special deal in order to avoid indictment, but his entering of a non-guilty plea has confused those following the case. He has been free on $2.5 million bail after having been accused in March of approving Madoff’s fraudulent transactions. If convicted, Friehling faces 105 years in prison.
Image: Flickr
