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Madoff Accountant Pleads Not Guilty

The accountant for the man convicted of the largest fraud in U.S. history said he is not guilty of any wrongdoing.

David Friehling was the auditor for convicted financier Bernard Madoff and is the only person other than Madoff charged with any crime in the case.

Prosecutors said Friehling was responsible for verifying transactions at Madoff's investment firm, but failed to discover that all of the transactions were fraudulent.

Madoff admitted he took millions of dollars from thousands of investors, using money from new clients to pay "profits" to old clients, giving everyone the false impression the scheme was making money.

Madoff, now also known as prisoner 61727-054, is serving a 150 year prison sentence at a medium security facility in Butner, North Carolina.

Embarrassed U.S. regulators missed the huge Madoff fraud despite several warnings and some investigations. Today at a congressional hearing, lawmakers discussed ways to improve regulatory oversight of the financial markets.

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