OpenSSH SOCKS support was removed from the OpenSSH implementation on 2000-02-07. Using SSH through SOCKS firewalls is now only supported using a ProxyCommand from within the SSH configuration files.
To use OpenSSH through SOCKS, you will need to take a few steps:
sudo gcc -o sconnect connect.c
ProxyCommand /compile_dir/sconnect -4 -S SOCKS-server:1080 %h %pReplace compile_dir with the directory containing sconnect, and replace SOCKS-server with the address of your SOCKS server.
Mac OS X Hints
http://hints.macworld.com/article.php?story=20030707082555629