Update on Compensation Programs Investigation
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This post is for historical informational purposes only. Please do not refer to this post for information pertaining to current Claims Conference programs. Visit What We Do for current program guidelines and information. Thank you.
August 2, 2011
In December 2009, the Claims Conference brought evidence of fraud to the Federal Bureau of Investigation (FBI) and U.S. Attorney’s Office for the Southern District of New York (USAO-SDNY). In the subsequent months, the USAO-SDNY and FBI conducted an investigation. On November 9, 2010, federal criminal charges were filed against seventeen persons allegedly members of a conspiracy perpetrated against two programs of the Claims Conference, the Article 2 Fund and the Hardship Fund. The November 9, 2010 press release issued by the government stated that “approximately 4,957 Hardship Fund applications from 2000 to 2009 appear to be fraudulent. These applications resulted in a loss to the Hardship Fund of approximately $18 million.” It continued, “…approximately 658 Article 2 Fund cases processed by the Claims Conference appear to be fraudulent… Those cases have resulted in a loss to the Claims Conference of approximately $24.5 million.”
The press release noted that the investigation was “ongoing.”
According to the Claims Conference, its ongoing investigation has resulted in the following actions:
| As of February 7, 2011: | Numbers of people | Total Amount |
| Article 2 Pensions Suspended | 823 | €25.8 million (approximately USD$32.2 million) |
| Have Agreed to Return Funds | 58 | €1.6 million (approximately USD$1.97 million) |
| Are Appealing Pension Suspension | 377 | €12.1 million (approximately USD$15.2 million) |
| Hardship Fund Claims Appearing to be Fraudulent | 3,809 | USD$13.7 million* |
* based on current exchange rate
Periodic updates will be issued as our investigation continues.
February 8, 2011
