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Madoff's Accountant Accused of Fraud


An accountant who worked for swindler Bernard Madoff was charged with fraud on Wednesday for allegedly lying to investors and officials about Madoff's investments.

Madoff pleaded guilty to stealing money from thousands of investors around the world in a $65 billion securities fraud scheme.

The U.S. Securities and Exchange Commission accuses Madoff's accountant, David Friehling, of making the scheme possible with bogus audits that falsely showed the enterprise making money.

Friehling could face decades in prison if he is convicted.

Madoff's fraud used money from new investors to cover withdrawals from old investors, which is called a pyramid or Ponzi scheme.

Some information for this report was provided by AP and Reuters.

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