Madoff's investors could see cash within a month

Investors who lost money in Bernard Madoff's alleged $50 billion fraud might begin recovering some of their funds as soon as next month, Securities Investor Protection Corp President Stephen Harbeck said.

"You are talking about unscrambling an egg," Harbeck said in an interview on Tuesday. First payouts from the investor protection fund could occur in "a month or two" if the cash isn't difficult to trace, Harbeck said. Other customers will have to wait for months, he said, declining to be more specific.

SIPC, a Washington-based group funded by member broker-dealers, acts as a trustee or works with court-appointed trustees to recover funds in missing-asset cases. SIPC's funds cover securities and cash claims of as much as $500,000 per customer, including up to $100,000 in cash.