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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (173690)	12/26/2008 12:14:24 PM
From: bentway	Respond to of 306849

I'm giving SZK a whirl. Ultrashort consumer goods.

To: Smiling Bob who wrote (173690)	12/26/2008 12:15:42 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 306849

Madoff’s Auditor, Facing Probe, Has ‘For Rent’ Sign on Office bloomberg.com Dec. 22 (Bloomberg) -- The auditing firm under investigation for signing off on Bernard Madoff’s firm’s financial statements has a “for rent” notice on the door, according to the firm’s landlord. Friehling & Horowitz, which operated out of a 550-square foot office space in New City, New York, a northern suburb, wrote that its audit of Madoff’s financial statements provided “reasonable assurance” they were “free of material misstatement,” according to the fiscal 2007 audit. Madoff was charged Dec. 11 by federal prosecutors with securities fraud. He allegedly told employees that Bernard L. Madoff Investment Securities LLC has been insolvent for years. Madoff said the business was a $50 billion Ponzi scheme, using new investments to pay off earlier investments, and “one big lie,” according to the government. “It’s a little obvious his life is in turmoil,” Joshua Chesir, said of David Friehling, the accountant running the firm. “There’s a for-rent sign on the door right now.” Chesir, a medical doctor, operates his pediatric practice out of the office next door to Friehling & Horowitz. He owns both his own and Friehling’s space in the condominium office park. The auditing firm is under investigation by the district attorney in New York’s Rockland County. Neither Friehling nor Jerome Horowitz, 80, who is retired and living in Florida, has been charged with any crime. Neil Friedman, of Palm City, Florida, a long-time investor whose $4.5 million account disappeared in the alleged fraud, said last week that he had learned of Madoff through Horowitz, a friend for almost half a century. Outside Accountant Friedman said Horowitz is Friehling’s father-in-law. He said Horowitz had been an outside accountant for Madoff for decades, and he believed Horowitz lost his life savings as well. Attorney Andrew Lankler, who represents Friehling, declined comment on Friehling or the status of his office. If Horowitz did indeed lose money with Madoff, he isn’t the only accountant to do so, according to attorney Robert Anello, who represents Sosnik Bell, an accounting firm based in Fort Lee, New Jersey. Scott Sosnik and Larry Bell, the principals of Sosnik Bell, “held large personal investments” with Madoff’s firm “and thus share in the loss,” Anello said. Sosnik Bell handled paperwork for hundreds of Madoff’s investors, Anello said. They summarized the information from monthly statements for individuals and weren’t an agent of Madoff’s, he said in a telephone interview. “Sosnik Bell was not asked to perform analysis or due diligence with respect to the monthly statements or the tax summary statements and didn’t serve as an investment advisor for such clients,” Anello said. The case is U.S. v. Madoff, 08-MAG-02735, U.S. District Court for the Southern District of New York (Manhattan). To contact the reporter on this story: Karen Freifeld in New York state Supreme Court at kfreifeld@bloomberg.net. Last Updated: December 22, 2008 16:39 EST