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April 25, 2014 / 25 Nisan, 5774
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Claims Conference Looking to Quell Media Storm on 2001 Letter

An anonymous letter sent to the Claims Conference’s Frankfurt office in 2001 identified five cases where restitution was approved for ineligible claimants.
By:
Claims Conference board chairman Julius Berman

Claims Conference board chairman Julius Berman

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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 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.

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.

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4 Responses to “Claims Conference Looking to Quell Media Storm on 2001 Letter”

  1. It's about time – let's hope it's not a whitewashing investigation and that it's independent and sincere. How does the WJC allow the same Chairman of the Claims Conference to stand for office for such a long time? Invites problems.

  2. Anonymous says:

    I have the guts to say they are a much of thieves. I am a child of Holocaust survivors. For years I have yelled and screamed that there has been hanky panky going on while Holocaust survivors were denied their due. How stupid are we not to protest? A lot of people belong in jail. Holocaust survivors are going without food and medicine while the thieves play with their funds. If you agree with me , speak out. I call on all Holocaust survivors and their children and grandchildren to demand retribution now. I am not afraid to speak out. The claims conference in my opinion is corrupt or at least inept. Soon the holocaust survivors will all be dead. How much more money will be stolen. Rabbi Dr. Bernhard Rosenberg

  3. Anonymous says:

    1.

    These are some of the anti Semitic responses I received ; thought I would share them with you. This only encourages me to fight harder. Please help me condemn the Holocaust claims Conference and ask for the dismissal of their leadership.

    RABBI DR. BERNHARD Rosenberg

    Reply


    Brian
    May 25, 2013 – 4:21 pm.

    **** off Rosen****!

    Reply

    2.
    Reverend Loki
    May 25, 2013 – 4:28 pm.

    “You speak for our Kedoshim, the martyrs who are no longer with us, as well for the few who are still alive.”.

    “kedoshim” IS YIDD FOR LICE.
    “the martyrs” ARE THE BILLION OF LICE THAT THE “BAD” NATIONAL SOCIALISTS GASSED WITH ZYKLON-B.

    OY VEY, OY VEY.

    rosenbugger GO JOIN THE kedoshim, BASTARD.

    Reply THIS IS A THREAT KEDOSHIM MEANS THOSE HOLY ONES WHO ARE DEAD.

  4. Anonymous says:

    To World Jewry:

    I hope you will consider my plea as one of the few Rabbis in Americas who speaks out for Israel, fights anti-Semitism throughout the world and one who speaks out vehemently against extremist Muslims. In addition I fight on behalf of Holocaust survivors and have been vocal regarding the Holocaust Claims Conference missing funds. I was also president of Rabbis for Romney. You are welcome to look me up on the internet.

    We are living in pre Holocaust times. European Jewry is facing major anti-Semitism and parts of Europe are Judenrein. Israel is facing a possible Holocaust from Iran and surrounding enemies. I was just banned from the Huffington Post for expressing my displeasure with Muslims praying at Auschwitz over my family ashes. Extremist Muslims want Israel and all Jews annihilated. My plea to all Jews: Speak out. Tell your Rabbis not to remain silent. We are running out of time.

    Rabbi Dr. Bernhard Rosenberg

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