Claims Conference Plans To Respond on Botched Probe Into $57M Holocaust Fraud

Julius Berman Appoints Task Force After Forward Expose

getty images

By JTA

Published May 20, 2013.
  • Print
  • Share Share

Amid calls that the Claims Conference bungled a warning in 2001 about fraud within the organization, conference leaders appointed a committee to “formulate an appropriate course of action.”

The move, announced by board chairman Julius Berman in an email to board members on Sunday, followed an announcement by the World Jewish Congress that it was setting up its own task force to look into allegations of a cover-up by the Claims Conference.

The allegations concern the Forward’s revelation that an anonymous letter sent to the Claims Conference’s Frankfurt office in 2001 that identified five cases in which restitution was approved for ineligible claimants.

The letter reached the organization’s then-director in Germany, Karl Brozik, who queried Semen Domnitser, the official in New York who approved the cases and who was found guilty two weeks ago of spearheading the $57 million fraud scheme that run unimpeded at the Claims Conference from 1993 to 2009. In his 2001 response to Brozik, Domnitser acknowledged that the cases had been wrongfully approved but led officials to believe that any errors were inadvertent. The fraud scheme continued to run for nearly a decade more.

The Forward later revealed that current Claims Conference officials sought to shift the blame to Brozik, who has since died.

Among those who were CC’d on Domnitser’s response to Brozik was the former chief of the conference, Saul Kagan, it’s then-chief, Gideon Taylor, and its current chief, Greg Schneider, whose formal title is executive vice president.

While a Claims Conference staffer who conducted an internal review for the organization in 2001 expressed serious concerns about Domnitser and other Claims Conference employees who reviewed and approved the fraudulent applications, the organization failed to take action against Domnitser.

In recent days, critics have accused the Claims Conference of orchestrating a cover-up of the episode. But Schneider’s office denies the accusations, noting that it was the Claims Conference itself — by way of Schneider — that shared the letter with the FBI and called attention to it during Domnitser’s trial to demonstrate how Domnitser systematically lied to his superiors.

Though Schneider was CC’d on Domnitser’s response to Brozik, a Claims Conference spokeswoman said Schneider did not see the original anonymous 2001 letter and at the time was not the person who would have handled the matter, because several people senior to him were involved. Ultimately, it was Brozik who elected not to inquire further into the irregularities, the Claims Conference said. Brozik is now deceased.

“I have asked our Chairman of the Executive, Amb. Reuven Merhav, to head a Select Leadership Committee of the board to formulate an appropriate course of action for the Conference with respect to the issues surrounding the 2001 letter,” Berman wrote in his email Sunday. “I look forward to its deliberations and recommendation.”

The $57 million fraud scheme discovered in 2009 involved falsifying applications to the Hardship Fund, an account established by the German government to provide one-time payments of approximately $3,360 to those who fled the Nazis as they moved east through Germany, and the Article 2 Fund, through which the German government gives pension payments of approximately $411 per month to needy Nazi victims who spent significant time in a concentration camp, in a Jewish ghetto in hiding or living under a false identity to avoid the Nazis.

In all, 31 people were arrested in connection with the scheme. Twenty-eight pleaded guilty and the three who went to trial were found guilty this month in federal court in Manhattan.


The Jewish Daily Forward welcomes reader comments in order to promote thoughtful discussion on issues of importance to the Jewish community. In the interest of maintaining a civil forum, The Jewish Daily Forwardrequires that all commenters be appropriately respectful toward our writers, other commenters and the subjects of the articles. Vigorous debate and reasoned critique are welcome; name-calling and personal invective are not. While we generally do not seek to edit or actively moderate comments, our spam filter prevents most links and certain key words from being posted and The Jewish Daily Forward reserves the right to remove comments for any reason.





Find us on Facebook!
  • Half of this Hillel's members believe Jesus was the Messiah.
  • Vinyl isn't just for hipsters and hippies. Israeli photographer Eilan Paz documents the most astonishing record collections from around the world:http://jd.fo/g3IyM
  • Could Spider-Man be Jewish? Andrew Garfield thinks so.
  • Most tasteless video ever? A new video shows Jesus Christ dying at Auschwitz.
  • "It’s the smell that hits me first — musty, almost sweet, emanating from the green felt that cradles each piece of silver cutlery in its own place." Only one week left to submit! Tell us the story of your family's Jewish heirloom.
  • Mazel tov to Chelsea Clinton and Marc Mezvinsky!
  • If it's true, it's pretty terrifying news.
  • “My mom went to cook at the White House and all I got was this tiny piece of leftover raspberry ganache."
  • Planning on catching "Fading Gigolo" this weekend? Read our review.
  • A new initiative will spend $300 million a year towards strengthening Israel's relationship with the Diaspora. http://jd.fo/q3Iaj Is this money spent wisely?
  • Lusia Horowitz left pre-state Israel to fight fascism in Spain — and wound up being captured by the Nazis and sent to die at Auschwitz. Share her remarkable story — told in her letters.
  • Vered Guttman doesn't usually get nervous about cooking for 20 people, even for Passover. But last night was a bit different. She was cooking for the Obamas at the White House Seder.
  • A grumpy Jewish grandfather is wary of his granddaughter's celebrating Easter with the in-laws. But the Seesaw says it might just make her appreciate Judaism more. What do you think?
  • “Twist and Shout.” “Under the Boardwalk.” “Brown-Eyed Girl.” What do these great songs have in common? A forgotten Jewish songwriter. We tracked him down.
  • 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.