Why Is the U.S. Still Sitting on $4 Billion in Madoff Money?

By David Voreacosand Erik Larson, Bloomberg News

There’s a $4 billion pot of cash at the Department of Justice for victims of Bernard L. Madoff’s Ponzi scheme. Thousands of them have been trying to tap the fund since it was set up three years ago, without seeing a penny. Many are elderly and live modestly; some have lost their life savings; many are losing their patience.

Daphne Brogdon, a Food Network personality in her late 40s whose family lost about $5 million in the scam, said she was ecstatic when she learned about the Justice Department fund. ...