The accountant accused of helping Bernard Madoff steal billions of dollars in Wall Street's biggest Ponzi scheme pleaded guilty to fraud and tax charges Tuesday and is cooperating with investigators, court papers showed.
David Friehling agreed to cooperate with the government and entered a guilty plea in federal court in Manhattan.
Friehling, 49, faces 114 years in prison for nine counts including fraud and obstructing tax authorities, the plea agreement stated.
However, under the terms of the plea agreement, prosecutors may petition the court to take Friehling's cooperation into account. The court has the final say on sentences.
"If this Office determines that the Defendant has provided substantial assistance in an investigation or prosecution, and if he has fully complied with the understandings specified in this Agreement, this Office will file a motion... requesting the Court to sentence the Defendant in light of the factors," US prosecutor Preet Bharara wrote.
Friehling is only the third person to plead guilty in Madoff's multi-billion, decades-long scam. He was arrested in March and is accused of claiming to have vetted Madoff's accounts when he had not, rather than actually taking part in the Ponzi scheme.
Madoff is serving a 150-year sentence in prison and his former associate Frank DiPascali, who has also said he wants to cooperate with investigators, is awaiting sentencing.
