Friehling remains free, testifying in Madoff Ponzi scam

• David Friehling cooked the books for Bernie Madoff
• New City auditor testifying for federal prosecutors
• Friehling sentencing rescheduled for July
• Madoff auditor free%2C testifying for feds

The crime

Former New City auditor David Friehling spent nearly two decades cooking the books for Ponzi-schemer Bernie Madoff, helping Madoff deceive the federal government and rip off thousands of investors for $65 billion.

Friehling pleaded guilty Nov. 3, 2009, to nine counts, including securities fraud and investment adviser fraud and three counts of obstructing tax law administration. Instead of going to prison, however, Friehling began working off his potential sentence as a government witness against other alleged fraudsters who worked for Madoff.

Five former Madoff workers were recently convicted of 31 federal charges following a trial during which Friehling testified for the U.S. Attorney's Office in Manhattan. They all have been sentenced to federal prison.

Those employees followed nine other Madoff workers who pleaded guilty to financial crimes involving the Ponzi scheme dating to the 1970s, according to the U.S. Attorney's Office.

Friehling's role

Friehling filed false statements for 17 years – from 1991 to 2008 – with the U.S. Securities and Exchange Commission that certified the financial books for Bernard L. Madoff Investment Securities LLC were legitimate.

He inherited Madoff's work from his late father-in-law, Jerome Horowitz, with whom he operated an accounting firm in a nondescript office at the Georgetown Office Plaza in New City. Madoff paid him $12,000 to $14,500 a month, but Friehling admitted in court he never audited the business.

Friehling, 55, married with three children, could technically face up to 114 years in prison, though he is likely to get far less under federal sentencing guidelines. The judge, Alvin Hellerstein, didn't commit to a sentence when Friehling became a cooperating witness.

Friehling told the judge in 2009 that he didn't know anything about Madoff's scheme.

"In what was the biggest mistake of my life, I put my trust with Bernard Madoff," Friehling said.

As part of his plea, Friehling forfeited $3.1 million and two properties, including an estimated $1 million house at 4 Hi Tor Road off South Mountain Road in New City. He told the judge his family lost $4.3 million when Madoff's house of cards collapsed.

Sentencing now 2015

Friehling's sentencing has been adjourned nearly a half-dozen times at the request of federal prosecutors. His most recent date of Dec. 5 was rescheduled to July 10, 2015.

Friehling has been free on $2.5 million bail and has been allowed to travel outside New York with the judge's permission.

Friehling could not be reached for comment. His attorney, Andrew Lanker, has declined comment.