1099 for Savings Bonds Reissue

Long story-savings bonds were in my name POD ex-stepdaughter (divorced 10 yrs ago). She forged my name to have them reissued into her name & got flagged by Treasury dept. I had totally forgotten about these bonds until I received notice from Treas dept. about attempted activity. Anyhow, since all my divorce papers said was anything that was in his posession at the time of the divorce was his & anything at the of her posession was hers blah blah blah - no detail. (Nasty divorce - I was left with nothing, he got it all). Treas legal team decided that since she had the bonds, then he had the bonds so they were his so I couldn't get them back. So I told them I was going to court to get them back. Two months later they reissue them to him w/o my signature which when I found out about it 6 months later they tell me they can do on the divorce papers (& their determination). And now I get a 1099 for the interest - the bonds were from 1985 so it's just about full value. Treas had told me this and I argued with her back then - if I wasn't getting the benefit of the bonds -why would I have to pay taxes on something I wasn't getting? So here it is. My husband now wants me to call back down to Treas dept and fight with them. (I think it's a losing battle). Thoughts?
BTW-he then cashed the bonds 5 months after they were reissed. What then does he have to pay if anything?
thanks