Madoff auditor could carve out plea bargain

David Friehling, the former auditor of convicted fraudster Bernard Madoff, could cut a deal with US prosecutors.

A federal judge gave prosecutors the go-ahead to reach a possible settlement with Friehling after he entered a not guilty plea last week to charges including filing false reports, the Sunday Times reported.

Friehling allegedly signed off Madoff's accounts year after year without checking their accuracy.

But legal experts believe he is ready to cut a deal because he waived his right to a grand jury hearing, known to be a sign that a defendant is willing to negotiate with prosecutors.

US district judge Alvin Hellerstein agreed to convene the next hearing on 1 October, giving the prosecutors time to hammer out an accord with Friehling.