Madoff 'n' Jeff

Primary sources exposed and explained.
Dec. 17 2008 5:34 PM

Madoff 'n' Jeff

VIEW ALL ENTRIES

Bernie Madoff, a much-respected Wall Street investment adviser and former NASDAQ chairman, was arrested last week after he confessed to the Federal Bureau of Investigation that he'd committed securities fraud. Madoff told the FBI that his 50-year-old company, Bernard L. Madoff Investment Securities LLC, had been running a "giant Ponzi scheme" for years and that there was "no innocent explanation." The company has been placed in receivership.

Investigators for the Securities and Exchange Commission, the FBI, and the Securities Investor Protection Corporation will surely have a few questions for the company's accountant, Friehling & Horowitz—a small tax-preparation firm located in a shopping center in tiny  New City, N.Y.—about the $1.3 billion in assets that David Friehling signed off on in December 2006. At least one hedge-fund adviser,  Aksia LLC, had last year warned clients that Friehling & Horowitz, which had only "three employees, of [whom] one was 78 years old and living in Florida [and] one was a secretary," seemed a peculiar choice given "the scope of Madoff's activities."

Advertisement

The two companies were, indeed, an odd match. On the Madoff Investment Securities  Web site (Pages 2-4), which has now been removed and replaced with a trustee notice, the Wall Street powerhouse boasted of being "one of the first U.S. members of the London Stock exchange." Friehling led a more provincial life, delightedly relating last year in the "Trusted Professional,"a newsletter for certified public accountants, that while touring Europe last year he and his wife foiled potential pickpockets by relying on a prepaid debit card rather than cash (below). "Although the seascape and the historical sites differ dramatically from those in the U.S.," Friehling wrote, "we are all operating in a 21st-century economy. When exiting ruins that are over 2,500 years old, there you find it: the bank ATM!"

Please send suggestions for Hot Document to documents@slate.com.

1_123125_2137821_2180654_2203776_2206989_madoffsauditor1

TODAY IN SLATE

Politics

Smash and Grab

Will competitive Senate contests in Kansas and South Dakota lead to more late-breaking races in future elections?

Stop Panicking. America Is Now in Very Good Shape to Respond to the Ebola Crisis.

The 2014 Kansas City Royals Show the Value of Building a Mediocre Baseball Team

The GOP Won’t Win Any Black Votes With Its New “Willie Horton” Ad

Sleater-Kinney Was Once America’s Best Rock Band

Can it be again?

Technocracy

Forget Oculus Rift

This $25 cardboard box turns your phone into an incredibly fun virtual reality experience.

One of Putin’s Favorite Oligarchs Wants to Start an Orthodox Christian Fox News

These Companies in Japan Are More Than 1,000 Years Old

Trending News Channel
Oct. 20 2014 6:17 PM Watch Flashes of Lightning Created in a Lab  
  News & Politics
Politics
Oct. 20 2014 8:14 PM You Should Be Optimistic About Ebola Don’t panic. Here are all the signs that the U.S. is containing the disease.
  Business
Moneybox
Oct. 20 2014 7:23 PM Chipotle’s Magical Burrito Empire Keeps Growing, Might Be Slowing
  Life
Outward
Oct. 20 2014 3:16 PM The Catholic Church Is Changing, and Celibate Gays Are Leading the Way
  Double X
The XX Factor
Oct. 20 2014 6:17 PM I Am 25. I Don't Work at Facebook. My Doctors Want Me to Freeze My Eggs.
  Slate Plus
Tv Club
Oct. 20 2014 7:15 AM The Slate Doctor Who Podcast: Episode 9 A spoiler-filled discussion of "Flatline."
  Arts
Brow Beat
Oct. 20 2014 9:13 PM The Smart, Talented, and Utterly Hilarious Leslie Jones Is SNL’s Newest Cast Member
  Technology
Technocracy
Oct. 20 2014 11:36 PM Forget Oculus Rift This $25 cardboard box turns your phone into an incredibly fun virtual-reality experience.
  Health & Science
Bad Astronomy
Oct. 21 2014 7:00 AM Watch the Moon Eat the Sun: The Partial Solar Eclipse on Thursday, Oct. 23
  Sports
Sports Nut
Oct. 20 2014 5:09 PM Keepaway, on Three. Ready—Break! On his record-breaking touchdown pass, Peyton Manning couldn’t even leave the celebration to chance.