A firm hired by the U.S. to distribute $4 billion to victims of Bernard Madoff’s Ponzi scheme has racked up $38.8 million in billings over four years. The investors are still waiting for their first checks, though.
The U.S. Justice Department disclosed its payments to Richard Breeden, the Madoff Victim Fund administrator, in response to a Freedom of Information Act request from Bloomberg News. Breeden’s fees, which are being paid from cash in the fund, cover his work through 2016.
The delay highlights how 8 1/2 years after Madoff’s arrest investors are still scrambling to recover money from a U.S. fund that was announced with great fanfare. Victims have recovered billions of dollars from another fund, but they have yet to be made whole.
"It’s very frustrating that people are making money off us like this, using money that was recovered for victims," said Daphne Brogdon, a Food Network personality, whose family lost about $5 million in the Madoff scam. "They’re eating away at whatever percentage we could possibly get."
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