Accountancy Magazine
Madoff auditor under investigation
$50bn investment fraud hits UK banks
15 December 2008
A New York district attorney is investigating the auditor of Bernard L Madoff Investment Securities, the hedge fund at the centre of an alleged $50bn fraud in the US.
Friehling & Horowitz, based in a northern suburb of New York City, signed off the 2006 annual financial statements of the hedge fund, run by former Nasdaq chairman Bernard Madoff, according to Bloomberg.
The three-person auditing firm is now being investigated by Rockland County DA Thomas Zugibe, according to Bloomberg.
Hedge fund boss Madoff is accused of setting up a glorified ‘Ponzi’ scheme, using money from new investors to pay off existing clients.
Meanwhile, it has emerged that several UK banks, including HSBC and RBS, could be exposed to large losses after placing funds with Madoff, while Nichola Horlick, head of Bramdean Investments, has accused US regulators of failing to spot the fraud that first emerged last week when Madoff allegedly said the business had been insolvent ‘for years’.
Friehling & Horowitz, based in a northern suburb of New York City, signed off the 2006 annual financial statements of the hedge fund, run by former Nasdaq chairman Bernard Madoff, according to Bloomberg.
The three-person auditing firm is now being investigated by Rockland County DA Thomas Zugibe, according to Bloomberg.
Hedge fund boss Madoff is accused of setting up a glorified ‘Ponzi’ scheme, using money from new investors to pay off existing clients.
Meanwhile, it has emerged that several UK banks, including HSBC and RBS, could be exposed to large losses after placing funds with Madoff, while Nichola Horlick, head of Bramdean Investments, has accused US regulators of failing to spot the fraud that first emerged last week when Madoff allegedly said the business had been insolvent ‘for years’.
CCH is a trading name of Wolters Kluwer (UK) Limited. Registered in England & Wales, No. 450650. Registered office: 145 London Road, Kingston upon Thames, Surrey KT2 6SR. Wolters Kluwer (UK) Ltd is authorised and regulated by the Financial Services Authority for general insurance business.