Victims of Bernie Madoff have another $2 million to spread around. Three boats owned by the imprisoned fraudster were auctioned off in Florida yesterday and brought in about $1 million; a sport-fishing yacht owned by Bernie's former sidekick, Frank DiPascali, reeled in another $950,000. And Ruth Madoff's convertible found a new owner, too: The 1999 Mercedes with 12,000 miles on it sold for $30,000. [Bloomberg]

As if it wasn't bad enough that Bernie Madoff investors were handing over their money to a con artist to manage, it seems they were also putting their trust in a drug-addicted gun freak, too. When Bernie Madoff's right-hand man Frank DiPascali pleaded guilty earlier this week to charges he helped engineer the $65 billion scheme and he agreed to cooperate with prosecutors, the deal also guaranteed DiPascali that the feds wouldn't come after him for the "use of controlled substances prior to 1992" and "for possessing illegal firearms up until last Friday." Between this news and the revelation that Bernie had a 20-year affair that no one knew about, the made-for-TV Madoff movie is getting spicier by the day, isn't it? [NYP, WSJ]

• Bernie Madoff's brokerage firm, which is now up for sale, probably won't fetch more than $10 million, according to a report drafted by Lazard. The investment bank goes on to point out that Bernard L. Madoff Investment Securities is now a "tarnished" brand. Really, you think? [Bloomberg]
• A report by the Financial Industry Regulatory Authority suggests that Madoff may not have made a single trade on behalf of his investors. [AP]
• Attorney General Andrew Cuomo has issued subpoenas to determine whether money manager Ezra Merkin may have defrauded investors by putting their money in Madoff's hands without their knowledge. [NYT]
• Meet Frank DiPascali Jr., Bernie's former right-hand who is now under investigation for his role in Madoff's scheme. [Bloomberg]