Results tagged “audit”

David Friehling, who was in charge of auditing Bernard Madoff's billion dollar "business"/Ponzi scheme from a little accounting office in a Rockland County strip mall, pleaded guilty to securities fraud charges for not verifying Bernard Madoff's trades and assets. The 49-year-old said, "At no time was I ever aware Bernard Madoff was engaged in a Ponzi scheme," and said his own family's savings (and kids' college funds)—which is also an SEC violation— were put into Madoff's scheme, while also admitting he took Madoff's records "at face value."

An audit by the State Comptroller's Office has found that five CUNY colleges failed to report 73 percent of the felonies that occurred on their campuses, as required by law. The most ironic offender? John Jay College of Criminal Justice, which failed to report 19 of its 20 felonies.

Following this weekend's crash, the carriage horse debate surfaces in the headlines once again. CityRoom takes a look at the status of the industry after two years of getting audited by the city comptroller's office. They note that while certain things have improved, "the two agencies that oversee the business have acted too slowly in putting reforms into effect."

In this case, double-dipping doesn't refer to a George Costanza-like social faux pas—it's the more serious instance of a retired city worker who collects his/her pension PLUS pay from a new public job! The Daily News reports, "New city audits have found 39 city retirees double-dipping with new public jobs - and pulling in some $600,000 in improper pension payments," such as "a retired assistant district attorney collecting a $69,660 pension on top of a $99,100 consulting contract for the state courts... a retired police captain who earned $51,246 as a city teacher on top of a $55,622 pension and a retired teacher with a $55,882 pension who also worked an FDNY office job for $76,490." Nice work if you can get it! The News further explains that retired city employees cannot receive pension payments if they take "another city or state job, though some are allowed to do so if they obtain waivers." City Comptroller William Thompson said, "Immediate action ... is needed to investigate and recoup, if appropriate, any improper payments made to these retirees identified as possible 'double-dippers.'"

Bernard Madoff's accountant was (finally) charged with helping the fallen financier run his Ponzi scheme. David Friehling was "charged with securities fraud, aiding and abetting investment adviser fraud and four counts of filing false audit reports with the Securities and Exchange Commission," according to the Wall Street Journal. Friehling, the first arrest aside from Madoff's in the case, made his $2.5 million bail after the hearing.

After an audit of funds meant for childcare programs for low-income parents, State Comptroller Thomas DiNapoli referred multiple daycare centers to district attorney offices in Queens, Brooklyn, Manhattan, and the Bronx for possible prosecution. The audit determined that between 1999 and 2007, more state money was spent fraudulently than legally by recipients.