Federal Indictment or Guilty Plea May Be Coming in Case Against Madoff’s Accountant

The government’s case against the longtime accountant for admitted Wall Street swindler Bernard Madoff took a twist today, as federal prosecutors indicated they expect either a federal indictment or a guilty plea in the case in the next month.

The accountant, David Friehling, was arrested and charged on March 18 in connection with his supporting role in the massive $65 billion Ponzi scheme run by Madoff. Friehling is accused of lying to securities regulators and investors about having conducted outside audits of Madoff’s books for years.

Madoff, the 70-year-old former Nasdaq chairman and well-known New York City money manager, pleaded guilty on March 12 to securities fraud and faces up to 150 years to live in prison when he is sentenced in June.

In a Manhattan courtroom today, federal prosecutors asked for and received a 30-day continuance of the proceedings against Friehling “to engage in further discussions with counsel about the disposition of this case,” court records show.

Friehling’s attorney agreed to the continuance, indicating he is cooperating with the ongoing plea negotiations.

Federal prosecutors now have until about May 17 to proceed with the case against Friehling, produce an indictment against him reached by a grand jury, or settle on a plea bargain to end the case against the accountant.

Friehling remains free on $2.5 million bond and has turned over his passport to prevent him from leaving the country to flee prosecution. He could be sentenced to up to 105 years in prison if found guilty of securities fraud and other financial crimes. He also faces civil charges filed by the Securities and Exchange Commission.

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