Charges Filed in $42.5 Million Claims Conference Fraud

By Uriel Heilman (JTA)

Published November 09, 2010.
  • Print
  • Share Share

The U.S. Attorney’s Office in New York is announcing charges against 17 people for participating in a $42.5 million fraud at the Claims Conference.

Details of the charges will be disclosed at a 1 p.m. news conference Tuesday by the U.S. Attorney for the Southern District of New York.

Officials at the Claims Conference, which acts as a pass-through to distribute more than $400 million per year from Eastern European governments directly to survivors, discovered late last year that it had paid out at least $7 million in pension payments dating back as far as 1980 to 202 imposters who used fraudulent documents to file claims for payments.

In July, the Claims Conference notified recipients of the money that their payments were being suspended and that they had 90 days either to return all the money they had received or appeal the suspension.

Claims Conference officials first noticed a year ago that several claimants had falsified information to receive payments from the Hardship Fund, an account established by the German government to give one-time payments of roughly $3,000 to those who fled the Nazis as they moved east through Germany.

A further internal investigation revealed that more fraudulent claimants received payments from the organization’s Article 2 fund, through which the German government gives pension payments of roughly $375 per month to those who spent either six months minimum in a concentration camp or at least 18 months in a Jewish ghetto in hiding or living under a false identity to avoid the Nazis.

Conference officials said they immediately notified the FBI and the U.S. Attorney’s Office, and discussed the matter in meetings with the German government. The Federal Bureau of Investigation and the Claims Conference are continuing to investigate the matter.

“We are determined to get to the bottom of this,” Gregory Schneider, the executive vice president of the Claims Conference, told JTA over the summer. “We have worked very closely with law enforcement.”






Find us on Facebook!
  • When is a legume not necessarily a legume? Philologos has the answer.
  • "Sometime in my childhood, I realized that the Exodus wasn’t as remote or as faceless as I thought it was, because I knew a former slave. His name was Hersh Nemes, and he was my grandfather." Share this moving Passover essay!
  • Getting ready for Seder? Chag Sameach! http://jd.fo/q3LO2
  • "We are not so far removed from the tragedies of the past, and as Jews sit down to the Seder meal, this event is a teachable moment of how the hatred of Jews-as-Other is still alive and well. It is not realistic to be complacent."
  • Aperitif Cocktail, Tequila Shot, Tom Collins or Vodka Soda — Which son do you relate to?
  • Elvis craved bacon on tour. Michael Jackson craved matzo ball soup. We've got the recipe.
  • This is the face of hatred.
  • What could be wrong with a bunch of guys kicking back with a steak and a couple of beers and talking about the Seder? Try everything. #ManSeder
  • BREAKING: Smirking killer singled out Jews for death in suburban Kansas City rampage. 3 die in bloody rampage at JCC and retirement home.
  • Real exodus? For Mimi Minsky, it's screaming kids and demanding hubby on way down to Miami, not matzo in the desert.
  • The real heroines of Passover prep aren't even Jewish. But the holiday couldn't happen without them.
  • Is Handel’s ‘Messiah’ an anti-Semitic screed?
  • Meet the Master of the Matzo Ball.
  • Pierre Dulaine wants to do in his hometown of Jaffa what he did for kids in Manhattan: teach them to dance.
  • "The first time I met Mick Jagger, I said, 'Those are the tackiest shoes I’ve ever seen.'” Jewish music journalist Lisa Robinson remembers the glory days of rock in her new book, "There Goes Gravity."
  • from-cache

Would you like to receive updates about new stories?




















We will not share your e-mail address or other personal information.

Already subscribed? Manage your subscription.