Bernard Madoff’s accountant has been arrested and charged with falsely certifying that he audited Mr Madoff’s firm, aiding and abetting investment advisor fraud and filing false reports to the Securities and Exchange Commission, according to the Financial Times.

The US attorney said David Friehling was not charged with knowing about Mr Madoff’s Ponzi scheme, but said that “Mr Friehling’s deception helped foster the illusion that Mr Madoff legitimately invested his clients’ money”.

James Clarkson, acting director of the SEC’s New York regional office, said: "Friehling essentially sold his licence to Madoff for more than 17 years while Madoff’s Ponzi scheme went undetected."