Six Corrupt Insiders Allegedly Processed Thousands Of Fraudulent Applications
For Payments Meant For Actual Victims Of The Holocaust
PREET BHARARA, the United States Attorney for the Southern District of New York, and JANICE K. FEDARCYK, the Assistant Director-In-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of criminal charges against seventeen alleged members of a long-running scheme that defrauded programs established to aid survivors of Nazi persecution out of more than $42 million. Employees of the Conference on Jewish Material Claims Against Germany (the “Claims Conference”), which administered the programs, were supposed to process and approve legitimate applications. Instead, they allegedly approved over 5,500 fraudulent applications, resulting in payouts to applicants who did not qualify for the programs. In exchange, these insiders kept a portion of the money for themselves and their co-conspirators.