MORE ON: Friehling Guilty Plea In Madoff Fraud

Here’s more info on the guilty plea today by David Friehling, Madoff’s accountant: Friehling pleaded guilty to a nine-count Superseding Information charging him with securities fraud, investment adviser fraud, four counts of filing false audit reports with the Securities and Exchange Commission, and three counts of obstructing or impeding the administration of the internal revenue laws. In addition to pleading guilty, Friehling agreed to cooperate with the government in its ongoing investigation of Madoff's fraud.

Moreover, pursuant to the cooperation agreement entered into with the government, Friehling agreed to forfeit to the government $3,183,000 (the "Forfeiture Money Judgment"), representing the total amount of compensation he received from Madoff’s company for his accounting and tax services, plus the amount that he, his wife, and his children withdrew from their investment advisory accounts with Madoff. Also, Friehling agreed to forfeit his interest in certain real properties, to the extent that those properties constitute, or were derived from, the securities fraud charge to which he pleaded guilty. The forfeited real properties will be used to partially satisfy the Forfeiture Money Judgment.
 
Following the guilty plea, Friehling was released on a $2.5 million bond on the condition that the bond be co-signed by eight financially responsible individuals and secured by equity in five properties owned by the co-signers valued between $1 million and $1.2 million. In addition, Friehling’s travel is restricted to the Southern District and the Eastern District of New York. He is required to maintain land line telephone service and will continue to be subject to regular pretrial supervision. Friehling’s wife was required to surrender her passport. (He had surrendered his passport at the time of his arrest.)
 
The statutory maximum sentences for each of the charged offenses are set forth in the chart below: