Madoff victim Union Bancaire Privee has attempted to deflect blame for blowing $700 million of its clients’ money by listing the reasons it decided to invest with The Ponz. Here’s one of the more interesting ones:
UBP says the SEC “accredited” Madoff’s strip-mall-based three-person auditor every year, despite the fact that the only active auditor in the shop, David Freihling, was telling the professional CPA organisation every year for 15 years that he wasn’t doing audits:
Madoff’s auditors Friehling & Horowitz were accredited by the SEC and all the investment vehicles were
audited by the largest auditing firms. Despite the supposedly size weakness of Madoff’s auditors, the
SEC has each year renewed its approval; SEC reports on the firm were regularly made available.
Which creates another question for the SEC with respect to Madoff. What exactly did Friehling & Horowitz have to do to be “accredited.” What did the SEC’s “reports” on the firm say, exactly? If someone has access to them, we’d be grateful if you would pass them along ([email protected]).