Madoff accountant pleads guilty to fraud but denies knowledge of Ponzi
THE former accountant to convicted Ponzi fraudster Bernard Madoff yesterday pleaded guilty to fraud and other charges in connection with auditing work for Madoff – but maintained he had no knowledge of the Ponzi scheme.
The judge ordered David Friehling to remain free on bond of $2.5m (£1.5m) until he is sentenced next year.
“At no time was I aware that Madoff was engaged in a Ponzi scheme,” Friehling said as he entered the guilty plea on charges of securities fraud and several other crimes. “I never had contact with investors and never acted as a feeder to investors.”
Madoff, 71, is serving a 150-year prison sentence after pleading guilty to the decades-long investment fraud of as much as $65bn. A Ponzi scheme is one in which early investors are paid with the money of new clients.