Sharansky, Lauder demand independent probe of Claims Conference
Statement slams failure to tackle $57-million fraud in restitution payouts from German government
JTA — Jewish Agency Chairman Natan Sharansky and World Jewish Congress President Ronald Lauder called on the Claims Conference to be reviewed by an independent committee following the disclosure of a missed opportunity to detect a massive fraud scheme.
Sharansky and Lauder released a joint statement on Tuesday, the first day of the Claims Conference’s annual board meeting, criticizing the organization’s leadership for not disclosing a 2001 letter warning about fraud to the organization’s board of directors — in addition to not disclosing a subsequent probe of the letter’s allegations.
The fraud went on for nearly 16 years, resulting in $57 million in fraudulent restitution payouts from the German government. Conference officials discovered the fraud in 2009 and alerted the FBI, which subsequently arrested 31 people, including several conference employees. All pleaded guilty or were found guilty at trial.
Sharansky and Lauder said in their statement that a committee tasked with recommending changes to the Claims Conference be made up mostly of representatives of other Jewish organizations.