Wednesday, March 18, 2009
Madoff Accountant Charged With Fraud
David G. Friehling, 49, of Pomona, New York, and Bernard Madoff's longtime accountant, was arrested on fraud charges today. Friehling, the sole practitioner at Friehling & Horowitz, CPAs, PC, a small accounting concern located in a non-descript building north of New York City, had been Madoff's accountant since 1991. Friehling is specifically charged with securities fraud, aiding and abetting investment adviser fraud and four counts of filing false audit reports with the SEC. He earned as much as $186,000 per year in that capacity, according to reports. The firm had been co-owned by Friehling and his father-in-law, Jerome Horowitz, who turned over the business to Friehling some years ago and passed away last week at the age of 80. He faces up to 105 years in prison if convicted on all charges. Meanwhile, Friehling and his wife may have lost as much as $14 million in investment accounts held at Bernard L. Madoff Investment Securities LLC.
Read the SEC's announcement here.