If you haven't heard of Shirley Sherrod or the Pigford case, you probably should. Shirley Sherrod was at the heart of her own scandal (which you can read about here), but the real, even bigger scandal was one in which she was only tangentially involved.
Mrs. Sherrod was a claimant in a court case filed against the Federal Government called Pigford vs. Glickman. The case was filed in behalf of black farmers, only it turns out that it turned into a cash cow for not only black farmers, but also lawyers, and a large number of people who never farmed a day in their lives.
John Stossel gets into some pretty disturbing details in his blog. If you think that the Federal Government is efficient and not at all wasteful, you need to read his post.