Madoff's Other Victims: His Former Employees

In the nearly two years he's been out of work, John Kelly has become an expert coupon clipper, reports CBS News business correspondent Anthony Mason.

"Other people are losing jobs for other reasons," Kelly told CBS News. "Mine is just somewhat unique."

Kelly worked for Bernie Madoff. He wasn't a high-level employee. His salary of $125,000 was modest by Wall Street standards, but for almost 10 years, up on the 19th floor of Madoff's firm, he worked on the trading desk as a liaison to brokerage firms.

"I still have nightmares or dreams that remind me of working there," said Kelly.

Kelly isn't sure what to think when people see the Madoff name on his resume.

"I don't know what people think," said Kelly. "I didn't have that kind of a position."

Nearly two years ago, after Madoff's $20 billion Ponzi scheme collapsed, Kelly lost his job and has not been able to find one since.

Kelly thinks it's because of the recession and who he worked for.

"I believe it's definitely both," said Kelly.

Because of comments he's received from employers, like this one:

"We'll need substantial convincing why someone who worked with that worst of scoundrels should be given any consideration at all."

He's not alone.

"I learned that some agencies had been told, 'don't send me anyone who worked for the company,'" said Elaine Solomon, former personal assistant to Bernie Madoff's brother, Peter.

"When I read who was charged, I still can't believe it," said Solomon. "I look at it and I go, oh my God. All those years, and you knew what was going on?"

Solomon says she lost her family inheritance, about $200,000, to Madoff's scheme, and her job.

"Now you look at everybody with a little cynicism and who do you trust anymore?" asked Solomon.

After more than a year of trying to find work in New York, Solomon moved to Florida to reinvent herself as a real estate agent.

"And I'm happy that people down here are not obsessed by Madoff," said Solomon. "And that's important. You have to move on. I moved on. That's my life. I moved on."

But John Kelly hasn't been able to yet.

"It's been a strain," said Kelly of how his family is holding up. "I don't even know how I'm holding up."

John, his wife Barbara, and their three kids, live in a modest two-bedroom townhouse in a New York suburb. For now, they're surviving on unemployment and food stamps. Their church donated their Thanksgiving turkey. The children, who used to visit the corporate headquarters and go on the company picnic, were confused when Madoff was arrested.

"The famous scene where he's coming around the corner and he's being bombarded by the photographers - I remember my middle child was upset when he saw that, because he remembers him as a nice man," recalled Kelly.

"It's like knowing two different people all of a sudden," said Kelly.

Bernie Madoff didn't just deceive his friends and investors. He deceived dozens of employees too.

"I didn't lose any money," said Kelly. "I lost my job. I lost my livelihood."

For John Kelly, the Madoff scandal isn't history -- yet. He can't close the door on it.

"Not yet, I'm trying," said Kelly. "I need someone to open up a door before I close that one. And I've gotta get that door open."