Crime

$40M in Holocaust Reparations Stolen in Massive Fraud Case

Seventeen employees of the Conference on Jewish Material Claims Against Germany have been arrested on charges of fraud after $42.5 million meant to help survivors of the Nazi Holocaust were siphoned from the reparations program. Investigators say that in exchange for kickbacks, the employees wrongfully signed off on forged applications.

Federal prosecutors revealed Tuesday that the 17 suspects had allegedly approved over 5,500 fraudulent payouts over the past 16 years, a number of which came from Russian immigrants who claimed their homes had been destroyed during World War II.  NBC New York reports:

Officials said Semen Domnitser was one of the alleged ringleaders who signed off on fraudulent applications from more than 4,000 people. In all, more than $40 million in funds provided by the German government meant for survivors was stolen or is unaccounted for, prosecutors said. Investigators said the Claims Conference first uncovered some of the alleged fraud and alerted the FBI to the ongoing scheme.

One of the funds allegedly ripped off was the “Hardship Fund” which pays approximately $3600 in a lump sum to individuals from the former Soviet Union and other Eastern European countries who can show they lost their homes and were in hiding during World War II. Other victims can claim payments up to $21,000 annually if they can show they lived under harsh conditions during the Nazi-era.

“We are outraged that individuals would steal money intended for survivors of history’s worst crime to enrich themselves,” said Julius Berman, Chairman of the Claims Conference, which has offices at 1359 Broadway. “It is an affront to human decency. As the victim of this complex scheme, the Claims Conference is grateful for the tremendous work of the FBI in investigating it. “

Investigators said as part of the scam, the group took out ads in Russian language newspapers seeking individuals who could either provide documents that showed they were alive and living in the affected regions. The FBI said the group also submitted similar or duplicate paperwork and photos on different applications for assistance.

“Each of the defendants played a role in creating, filing and processing fraudulent claims on behalf of non-qualifying applicants — and dividing up the spoils,” said Janice Fedarcyk, Assistant Director-in-Charge of the New York FBI.

According to federal investigators, the alleged scam began in 1994.  When the FBI began investigating the scheme, some of the suspects reportedly offered bribes to witnesses to keep them from cooperating with authorities.

The FBI said 4,957 bogus claims resulted in $18 million being wrongly taken out of one of the reparation funds.  The Claims Conference lost another $24.5 million as a result of 658 other fraud cases, officials said.

According to the New York Post, five of the 17 people arrested have been busted in the past; four of them are cooperating as witnesses against others involved.

Comments (31)

  • hempstead1944
    Posted on November 10, 2010 at 5:46pm

    Someone check George Soros’s deposit slips…..

    Report Post »  
  • trukmek
    Posted on November 10, 2010 at 1:51pm

    Must be a George Soros thing.

    Report Post » J.C. McGlynn  
  • teddrunk
    Posted on November 10, 2010 at 11:45am

    Reparations program? Last time I checked WW2 ended in ‘45.

    Report Post »  
  • NHABE64
    Posted on November 10, 2010 at 10:39am

    This is despicable alright, but I guess it just goes to show that any culture, race, color, religion or ethnice group can have its own corrupt individuals that will disgrace themselves as well as their group. A pity. One thing I have never understood why do we have a holocaust museum in Washington DC and not one museum for our POW’s who were tortured and murdered by the Japs in WWII. I would think a Patriotic President would want to do something about this one day..

    Report Post »  
  • Ohiowoman
    Posted on November 10, 2010 at 9:45am

    Check Soros’s pockets.

    Report Post »  
  • benrush
    Posted on November 10, 2010 at 9:06am

    I too, am grateful that the FEDERAL RESERVE is looking out for the little guy. We don’t have to worry about our paper money printing presses will be abused because these guys are SMART. They know when to print and when not to print. Congressional oversight would just let the dummies in on the game.

    Report Post »  
    • Deutscher
      Posted on November 10, 2010 at 9:40am

      I am not at all sure what that has to do with this story.

      Report Post »  
  • love the kids
    Posted on November 10, 2010 at 9:04am

    The Govt. would say that there is always a little waste and fraud in programs like that, but it is still for the better good.

    Report Post »  
  • EqualJustice
    Posted on November 10, 2010 at 9:02am

    WAIT, our FBI is involved in this issue between Germany and other countries? Is that because their OFFICE is in NYC? Why is it in NYC and why should we foot the bill for this investigation? I don’t get it?

    Report Post » EqualJustice  
    • Deutscher
      Posted on November 10, 2010 at 9:42am

      I appears that some if the fraud and conspiracy occured within the US.

      Report Post »  
  • 2GodBeTheGlory
    Posted on November 10, 2010 at 8:53am

    /BEGIN SARCASM/

    Government committing fraud with tax payers money – I would not have thought possible.

    /END SARCASM/

    Take a look at http://www.usa.gov/Agencies/Federal/All_Agencies/index.shtml for more

    Report Post » 2GodBeTheGlory  
    • Deutscher
      Posted on November 10, 2010 at 9:56am

      How is this the government creating fraud?

      I think you dont understand the story. It’s German money being stolen from victims by criminals.

      Report Post »  
  • HouseNegro
    Posted on November 10, 2010 at 8:24am

    Let me get this stright Nazi‘s running a fund for Jew’s.

    I’m sure at the time they thought this was a good idea. Kinda like electing Obama.

    Report Post » SpankDaMonkey  
    • Deutscher
      Posted on November 10, 2010 at 9:36am

      No you don’t have it straight. It’s Germans paying for the deeds of their forefathers.
      Not Nazis
      Come on

      Report Post »  
    • HouseNegro
      Posted on November 10, 2010 at 10:33am

      I must have hit a nerve lol………

      Report Post » SpankDaMonkey  
    • HouseNegro
      Posted on November 10, 2010 at 12:00pm

      Kind of like paying Slave Reparations right?

      Report Post » SpankDaMonkey  
  • heavyduty
    Posted on November 10, 2010 at 8:19am

    Hopefully they will be able to get this money back. But that is what happens when there are people that have no morals. They would probably steal from their own mothers.

    Report Post »  
  • Devil Dog 7175
    Posted on November 10, 2010 at 8:18am

    Was Spooky Dude any where near there?

    Report Post » Devil Dog 7175  
    • HKS
      Posted on November 10, 2010 at 8:48am

      He worked for the big guy himself processing dead Jews, probably stole their gold teeth and got rich.

      Report Post » HKS  
  • Gonzo
    Posted on November 10, 2010 at 8:17am

    Is there a fund for victims that can show they lived under harsh conditions during the communist-era?
    I believe the Soviets killed more people in 70 years than the Nazis did in 12.

    Report Post » Gonzo  
    • untameable-kate
      Posted on November 10, 2010 at 11:07am

      There will be a fund for people who lived through the Obama era to help with thier hair replacement.

      Report Post » Untameable-kate  
  • Conserving Ink
    Posted on November 10, 2010 at 8:05am

    Scams happen wherever there is a lot of money and a pitiful victim helps because people tend to not look as closely. I can‘t say I’m surprised. Well, I was surprised to find that such a fund even existed.

    http://conserving-ink.blogspot.com/

    Report Post » Conserving Ink  
  • jedi.kep
    Posted on November 10, 2010 at 8:04am

    Oh look! An article about jews. You all must be against jews! Quick! Call Media Matters!

    (Yes. I am being sarcastic.)

    Report Post » jedi.kep  
  • HKS
    Posted on November 10, 2010 at 8:01am

    Wow, seems like the war crimes go on for ever. Check into George Soros, I think he is one of them.

    Report Post » HKS  
  • truth4at
    Posted on November 10, 2010 at 8:00am

    Do people have no honor or respect anymore?

    Report Post » Karen DeSimone  
    • Fletch
      Posted on November 10, 2010 at 8:12am

      Charlie Rangel was just re-elected .. 350K voted for Alvin Green

      Report Post » Fletch  
    • Polwatcher
      Posted on November 10, 2010 at 8:22am

      It’s good to know that our Federal Reserve employees are not dishonest like this. The Fed is so honest that we don‘t even have to check it’s books. Thank goodness we have an honest Treasury Secretary, too. The old-timers always said that a fool and his money are soon parted. They also said that liars figure but figures don’t lie. Reagan said to trust but verify.

      Report Post »  
    • snowleopard3200 {mix art}
      Posted on November 10, 2010 at 8:25am

      there are still many people of honor, respect and of integrity; it is just the bad ones who get the most attention and shed pain and misery over the rest of the good folks. One persons bad attitude or deeds can unravel much good that has been achieved.

      For the scam these folks pulled, if convicted, sentence them to the full extent possible under the law.

      Report Post » Snowleopard {gallery of cat folks}  
    • Beckofile
      Posted on November 10, 2010 at 8:28am

      Where did the funds come from? I don’t care if it was German or Russian money but if it is ours we need to shut the fund down and bring the money back to the homeland to have Obama spread and waste.

      Report Post » Beckofile  
    • Jackson
      Posted on November 10, 2010 at 8:49am

      Um. Excuse me…. Why is the FBI involved in this? Is this American money? Tell me it isn’t! If it is, why on earth are WE paying war reparations to the victims of German and Russian atrocities! We were the good guys! We saved lives!
      Dear Blaze, MORE DETAILS PLEASE!!!!!!!

      Report Post » Jackson  
    • DimmuBorgir
      Posted on November 10, 2010 at 9:19am

      I bet some Jews stole it from the Jews. Then again it’s all ill gotten money anyway

      Report Post » DimmuBorgir  

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