Madoff ex-accountant takes step toward resolving case

By Martha Graybow

NEW YORK (Reuters) - U.S. prosecutors filed a court document on Wednesday that shows Bernard Madoff's former outside accountant, David Friehling, may be moving towards resolving the criminal case against him.

The filing, signed by a federal prosecutor and Friehling's defence lawyer, indicates that the accountant plans to waive indictment and possibly plead guilty. An indictment by a federal grand jury would be necessary if he were to contest the criminal charges filed against him in March and go to trial.

"Please take notice that the United States Attorney's Office will file an information upon the defendant's waiver of indictment," the court papers said.

An information is an alternative charging document in lieu of an indictment, and is typically used when a defendant decides to forego a trial and plead guilty.

It could also indicate that a plea agreement is being worked out between prosecutors and defence lawyers. Friehling's case was assigned to U.S. District Judge Alvin Hellerstein in Manhattan.

The auditor's lawyer, Andrew Lankler, declined to comment.

Friehling is the only person to be criminally charged in the Madoff affair besides the confessed swindler. Madoff was sentenced to 150 years behind bars last month for running a $65 billion (39.6 billion pounds) Ponzi scheme and checked in to a North Carolina prison on Tuesday to begin serving his time.

U.S. investigators have said 10 or more people associated with Madoff could face criminal charges in the coming months, a law enforcement source has previously told Reuters.