Saturday, December 5, 2009

The Guilty CPA

"David Friehling, a former accountant, pleaded guilty to fraud and other charges in connection with his auditing work for the firm of convicted swindler Bernard Madoff. However, Mr. Friehling denies knowing anything about the underlying Ponzi scheme. Instead, Mr. Friehling, 49 years old, said he failed to conduct independent audits of Bernard L. Madoff Investment Securities LLC's financial statements, saying he took the information given to him by Mr. Madoff or Mr. Madoff's employees at 'face value.' ... As evidence that he didn't know about Mr. Madoff's multi-billion-dollar Ponzi scheme, Mr. Friehling said he entrusted his retirement funds and his family's investments to Mr. Madoff, putting about $500,000 with the firm", Chad Bray at the WSJ, 4 November 2009, link:

When Friehling leaves prison, he has a position ready. As SEC enforcement director! What is Friehling guility of that dozens of SEC staffers aren't? See my 20 November 2009 post: Alternatively he can become a Deloitte & Touche partner who it can assign to the Fed "audit".

1 comment:

Anonymous said...

Standard operating procedure.

How much accounting is "real"?

We've got problems from the Fed all the way down to households.