Forex enterprise system scam accountant who was arrested and charged in March 2009 for his role in the Madoff investment scandal. Friehling was born in Sullivan County, north of New York City, and attended high school in Liberty, New York. Horowitz, a little-known accounting firm in New City, New York, a small hamlet in the Rockland County suburbs north of New York City, signed off on audits on Bernard L. The firm consisted of two principals—Friehling and Jerome Horowitz—and a part-time secretary.
Horowitz met Madoff in 1963 while working at the accounting firm run by Saul Alpern, Madoff’s father-in-law. At the time, the Madoff organization was a penny stock trader. He audited Madoff’s books for years, and kept the account after starting his own firm. CEO, Jim Vos, likened this situation to General Motors being audited by a three-person firm. Horowitz had informed the American Institute of Certified Public Accountants in writing since 1993 that it didn’t conduct audits.
Friehling was not registered with the Public Company Accounting Oversight Board, which was created under the Sarbanes-Oxley Act of 2002 to help detect fraud. Friehling was charged on March 18, 2009, with securities fraud, aiding and abetting investment adviser fraud, and four counts of filing false audit reports with the Securities and Exchange Commission. On July 10, 2009, Friehling waived indictment and pleaded not guilty to criminal charges. He agreed to proceed without having the evidence in the criminal case against him reviewed by a grand jury at a hearing before U. District Judge Alvin Hellerstein in Manhattan. On November 3, 2009, he pleaded guilty to the charges against him.
SEC forms before Madoff and others filled them in. Friehling’s sentencing was originally set for February 2010, but was postponed several times at the prosecutors’ request due to his cooperation with the government’s effort to unwind Madoff’s crimes. In March 2012 it was postponed to October 26, 2012. District Judge Laura Taylor Swain sentenced Friehling to one year of home detention and one year of supervised release.
Friehling avoided prison because he cooperated extensively with federal prosecutors and because he had been unaware of the extent of Madoff’s crimes. Addressing the court at the hearing, Friehling apologized to Madoff’s victims. 130 million forfeiture arising from the fraud. Swain said that she did not believe Friehling’s nonfeasance took place “in a vacuum”, and felt the forfeiture was necessary to hold the defendants to account even though it will likely never be repaid in full.