UPDATE 3-Ex-Madoff auditor pleads guilty, denies knew of fraud

* Friehling tells court never had contact with investors

* Helped approve Madoff books for 17 years

* Cooperating with investigators in continuing probe

* Agrees to forfeit $3.1 mln of Madoff firm compensation (Adds U.S. prosecutor on holding others accountable, $3.1million forfeiture)

NEW YORK, Nov 3 (Reuters) - The former outside accountantfor Bernard Madoff's firm pleaded guilty to fraud charges onTuesday, but he told a U.S. judge he did not know about theswindler's multibillion-dollar Ponzi scheme, which shookinvestor confidence and market regulators who missed it.

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