David Friehling: Madoff Accountant Finally Charged

Bernie Madoff accountant David Friehling is out on 2.5 Million Dollar bail after being charged with fraud for his part in the Bernie Madoff Ponzi Scheme. He is the only other person charged so far in the 65 Billion(or so)Dollar, decades long fraud that nobody seemed to know anything about.

David Friehling 's accounting firm has "audited" and "certified" Madoff's books for the last 17 years. Friehling was the only CPA in the small firm. He was charged with
securities fraud, aiding and abetting investment adviser fraud and false audit reports...and faces upwards of 105 years in prison.

The SEC, in their lawsuit, said Mr. Friehling "merely pretended" to audit Bernie Madoff's books.(oh really?) Friehling and his firm were paid from Madoff's ill-gotten gains, and he and his family improperly held accounts at the Madoff firm in violation of accounting rules, the SEC said.

Friehling turned himself in to the FBI...


Does anyone REMOTELY believe that Bernie Madoff and his accountant were the ONLY people who knew what was going on here?

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Citigroup Stock Gains 38%. Madoff To Plead Guilty

In Financial News:

Shares of Citigroup soared today after the CEO sent a letter to all employees claiming that Citigroup has posted an operating profit the first two months of 2009. Citigroup shares gained 38 percent today...

We have so many questions about this letter that we could fill 10 or so posts. A little creative accounting does not a recovery make. For those of you holding Citigroup stock, don't get too excited. The stock gained 40 cents from $1.05. Unless, of course, you have millions of shares.

In other "Financial" News:

Bernie Madoff, the largest Ponzi Schemer in history, will plead guilty to federal charges and spend the rest of his life in prison. Madoff is charged with securities fraud, investment adviser fraud, mail fraud, wire fraud, three counts of money laundering, false statements, perjury, false filings with the U.S. Securities and Exchange Commission and theft from an employee benefit plan.

The U.S. Attorney heading the case denies there is any plea agreement.

Estimates of losses from the Ponzi Scheme are around 50 Billion Dollars.

No word yet on whether Ruth Madoff, the Mrs., will face prosecution or forfeiture of the 42 Million Or So Dollars she controls. Although denying knowledge of the Ponzi Scheme, Ruth Madoff has amassed quite the tidy sum while being employed as a homemaker and socialite.

Ruth Madoff: My 62 Million Wasn't Part Of The Ponzi Scheme

From the "You Gotta Be Kidding Me" File:

Ruth Madoff, loooong time wife of "alleged" con artist and ponzi schemer Bernie Madoff, says her 62 Million Dollars had nothing to do with the "alleged" ponzi scheme her husband disguised as an investment firm for decades.

Mrs. Madoff has 45 Million Dollars in Bonds and 17 Million Dollars in CASH deposited with Wachovia. She claims this money is hers, had nothing to do with Bernie Madoff's investment fraud and should not be subject to seizure.

By the way...did we mention she withdrew $10 Million Dollars THE DAY BEFORE he was arrested?

For those of you thinking perhaps she was in the money before she married Bernie...they grew up in the same Queens neighborhood, Laurelton, then a lower-middle-class area.

Hmmm...

Maybe she is just a very savvy investor in her own right.

Sure.

YouTube Video Of The Day: The Ballad of Bernie Madoff

Today's Fileunderi YouTube Video of the Day:





Video Source: YouTube User FlinchStudio

The Madoff Client List: Hopefully You Aren't On It

The Madoff Client List has been released by the Bankruptcy court.The 162 Page document (in PDF Form) is filled with names you might recognize..stars,athletes, the New York Mets,the family of Bernie Madoff,his defense attorney (Chuckle). Some names appear more than once and it is assumed by those in the know that these folks had more than one account.

Have you ever looked at a list and knew you missed out on something good, but you pored over it anyway...just in case? Well, here's your chance to do the opposite and be smug in the knowledge that you steered clear of this one. See? You are a smart investor...

Here is the link to the list.(Source: The Wall Street Journal)

Harry Markopolos: Madoff Whistleblower Was Ignored

Harry Markopolos has testified at a House hearing that he had warned the S.E.C. about the Madoff ponzi scheme since 2000 and nobody did anything about it. Markopolos has also said that he feared for his life as a whistle blower (And was called paranoid by a committee member ).

Now let's see if we have this straight... Markopolos, who is somewhat of a heavy hitter on Wall Street, has been trying to get the SEC to do something about Madoff for EIGHT YEARS?? Doesn't the SEC have a duty to at least "look into" any allegations that are brought to them, regardless of the source? And this wasn't just a little minor insider trading...this was a freaking ponzi scheme that allegedly has been going on for decades.

What the hell?

The insanity continues...