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Senior Correspondent, CNBC
Bernard Madoff's auditor, who was responsible for certifying the financial statements of the confessed Ponzi schemer, has agreed to plead guilty, according to the Justice Department. According to documents filed in court Friday.
David Friehling will plead guilty to seven criminal counts including fraud, filing false statements with the Securities and Exchange Commission, and obstructing the IRS.
"The government anticipates that, at the pretrial conference scheduled for Nov. 3, 2009 ... David G. Friehling, the defendant, will plead guilty pursuant to a cooperation agreement with the Government," prosecutors said in a letter to the judge handling the case in Manhattan federal court.
Friehling initially pled not guilty, but is now expected to change his plea to guilty at a hearing on Tuesday in New York. His attorneys have been trying for months to work out a deal with prosecutors in exchange for his cooperation.
Friehling's lead attorney, Andrew Lankler, declined to comment to CNBC about the plea agreement.
The plea will mark the third guilty plea in the Madoff scandal. Madoff's chief financial officer, Frank DiPascali, has also agreed to cooperate with authorities. He is being held without bail in New York. Madoff himself pleaded guilty in March after confessing to the Ponzi scheme last December. He is serving a 150-year prison term in Butner, North Carolina.
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