Madoff Fund Has Paid Millions to Breeden Firm, Zero to Victims

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 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 ...