The SEC has now chargedFriehling & Horowitz, P.C. with securities fraud in connection with acting as auditor for Bernard Madoff Investment Securities LLC. Press release here.
Whatever this accounting firm did since 1991, it didn't seem to audit anything in connection with BMIS. I can't even imagine a defense that the firm would have in a situation in which it signed off on financial statements that were completely fabricated. In the words of the press release: "Friehling essentially sold his license to Madoff for more than 17 years."
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1. Posted by fedgovernor on March 19, 2009 @ 7:56 | Permalink
I wonder when the SEC is going to get around to arresting the former employees who accepted Madoff payoffs to cover up his Ponzi scheme for 15 years?
Madoff's scheme was reported numerous times to the SEC. The SEC "investigated" Madoff, and found his operation to be legitimate ... or so they claim.
So, it makes one wonder when these employees are going to come under FBI scrutiny. Many of them have suspiciously large amounts of assets, based on their pay.
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