Cohen Applauds FBI for Breaking Up Fraud Ring at Holocaust Fund
WASHINGTON, D.C. – Congressman Steve Cohen (TN-9) today condemned a group of conspirators for defrauding a Holocaust fund and commended the FBI for uncovering the crime. The Memphis Congressman has a long history of working to ensure fairness for Holocaust survivors and chaired a hearing this past September on the Holocaust Insurance Accountability Act of 2010.
“Holocaust survivors have suffered enough,” said Congressman Cohen. “This fund was established by the German government to help the survivors of Nazi persecution. To defraud a program created to assist survivors of one of the most terrible acts in human history is appalling.”
The Manhattan U.S. Attorney charged 17 people with participating in 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 more than 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 coconspirators.
In September Congressman Cohen chaired a Commercial and Administrative Law subcommittee hearing on the Holocaust Insurance Accountability Act of 2010. The measure would permit enforcement of state laws creating a cause of action for covered Holocaust-era insurance policy claims. The bill would also clarify the validity of any state law requiring insurers doing business in a state to disclose information on Holocaust-era insurance policies.
Furthermore, the legislation would restrict the use of funds by the U.S. Department of State or any other agency for the purpose of issuing a statement in a U.S. court seeking to dismiss a Holocaust-era insurance policy claim. Click here to see Congressman’s Cohen opening remarks.
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