News

08:41 AM
Connect Directly
Google+
Twitter
Facebook
RSS
E-Mail
50%
50%

Madoff's Ex-Auditor Pleads Guilty

David Friehling, the accountant who audited Bernard Madoff's books, pleaded guilty in Manhattan federal court, claiming he was unaware of Madoff's Ponzi scheme.

David Friehling, the accountant who audited Bernard Madoff's books, pleaded guilty in Manhattan federal court on Tuesday. Friehling claimed he was unaware of Madoff's Ponzi scheme even though he served as an independent auditor for Madoff's money management business from 1991-to 2008. He told the judge that his biggest mistake was trusting Madoff, according to CNBC.Friehling has pleaded guilty to nine counts of fraud, up from six counts in March, including securities and investor fraud, filing false statements with the SEC and three counts of obstructing the administration of federal tax laws. What's new in the case is the talk of Internal Revenue Service fraud - that he filed individual income tax returns for Bernie Madoff and others, "and the others could be the key here," said Scott Cohn in his CNBC video report. Friehling originally plead not-guilty but changed his plea to guilty and is now cooperating with the govermment.

A New York Times article speculated that tax fraud could be a new angle in the case and that "others" could be other Madoff family members, citing the possibility that Friehling may have filed taxes for other members of Madoff's family. Experts told The Times that the addition of the federal taxation charges could mean that the criminal investigation of the Madoff securities fraud is heading in a new direction toward criminal tax laws, suggesting that the government could go after family members for tax fraud.

David Friehling, the accountant who audited Bernard Madoff's books, pleaded guilty in Manhattan federal court, claiming he was unaware of Madoff's Ponzi scheme. Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Write a Caption, Win a Starbucks Card! Click Here
Latest Comment: Janice, I think I've got a message from the code father!
Current Issue
Security Operations and IT Operations: Finding the Path to Collaboration
A wide gulf has emerged between SOC and NOC teams that's keeping both of them from assuring the confidentiality, integrity, and availability of IT systems. Here's how experts think it should be bridged.
Flash Poll
New Best Practices for Secure App Development
New Best Practices for Secure App Development
The transition from DevOps to SecDevOps is combining with the move toward cloud computing to create new challenges - and new opportunities - for the information security team. Download this report, to learn about the new best practices for secure application development.
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2017-0290
Published: 2017-05-09
NScript in mpengine in Microsoft Malware Protection Engine with Engine Version before 1.1.13704.0, as used in Windows Defender and other products, allows remote attackers to execute arbitrary code or cause a denial of service (type confusion and application crash) via crafted JavaScript code within ...

CVE-2016-10369
Published: 2017-05-08
unixsocket.c in lxterminal through 0.3.0 insecurely uses /tmp for a socket file, allowing a local user to cause a denial of service (preventing terminal launch), or possibly have other impact (bypassing terminal access control).

CVE-2016-8202
Published: 2017-05-08
A privilege escalation vulnerability in Brocade Fibre Channel SAN products running Brocade Fabric OS (FOS) releases earlier than v7.4.1d and v8.0.1b could allow an authenticated attacker to elevate the privileges of user accounts accessing the system via command line interface. With affected version...

CVE-2016-8209
Published: 2017-05-08
Improper checks for unusual or exceptional conditions in Brocade NetIron 05.8.00 and later releases up to and including 06.1.00, when the Management Module is continuously scanned on port 22, may allow attackers to cause a denial of service (crash and reload) of the management module.

CVE-2017-0890
Published: 2017-05-08
Nextcloud Server before 11.0.3 is vulnerable to an inadequate escaping leading to a XSS vulnerability in the search module. To be exploitable a user has to write or paste malicious content into the search dialogue.

Dark Reading Radio
Archived Dark Reading Radio
In past years, security researchers have discovered ways to hack cars, medical devices, automated teller machines, and many other targets. Dark Reading Executive Editor Kelly Jackson Higgins hosts researcher Samy Kamkar and Levi Gundert, vice president of threat intelligence at Recorded Future, to discuss some of 2016's most unusual and creative hacks by white hats, and what these new vulnerabilities might mean for the coming year.