Accountant for Bernard L. Madoff Investment Securities, LLC Pleads Guilty

David G. Friehling, the accountant for Bernard L. Madoff Investment Securities, LLC ("BLMIS"), has plead guilty in Manhattan federal court. Friehling pleaded guilty to a nine-count Superseding Information charging him with securities fraud, investment adviser fraud, four counts of filing false audit reports with the United States Securities and Exchange Commission ("SEC"), and three counts of obstructing or impeding the administration of the internal revenue laws. In addition to pleading guilty, Friehling has agreed to cooperate with the Government in its ongoing investigation of Bernard Madoff's fraud. Friehling, 49, faces a statutory maximum sentence of 114 years in prison. He is also subject to mandatory restitution and faces criminal fines up to twice the gross gain or loss derived from the offense. Moreover, pursuant to the cooperation agreement entered into with the Government, Friehling has agreed to forfeit to the United States $3,183,000 (the "Forfeiture Money Judgement"), representing the total amount of compensation he received from BLMIS for his accounting and tax services, plus the amount that he, his wife, and his children withdrew from their BLMIS investment advisory accounts. Friehling also agreed to forfeit his interest in certain real properties, to the extent that those properties constitute, or were derived from, the securities fraud charge to which he pleaded guilty. The forfeited real properties will be used to partially satisfy the Forfeiture Money Judgement. Following the guilty plea, Judge Hellerstein released Friehling on a $2.5 million bond on the condition that the bond be co-signed by eight financially responsible individuals and secured by equity in five properties owned by the co-signers valued between $1 million and $1.2 million. In addition, Friehling's travel is restricted to the Southern District and the Eastern District of New York. He is required to maintain land line telephone service and will continue to be subject to regular pretrial supervision. Friehling's wife was required to surrender her passport. (Friehling had surrendered his passport at the time of his arrest.) Judge Hellerstein set a sentencing control date for Friehling on February 26, 2010, 2010, at 11:00 a.m.