The Claims Conference launched an internal probe of its mishandling of an early warning of massive fraud.
Reuven Merhav, the chairman of the organization’s executive committee, informed the board of directors on June 6 that the Claims Conference ombudsman has been asked to investigate the facts surrounding a 2001 letter that drew attention to several fraudulent restitution applications.
The 2001 letter resulted in an internal probe that failed to uncover the beginnings of a $57 million fraud scheme being orchestrated by Semen Domnitser, a Claims Conference employee. Domnitser was found guilty last month of overseeing the scheme.
In the wake of revelations of the 2001 letter and the failed probe, Natan Sharansky, chairman of the Jewish Agency, called for an independent investigation of the Claims Conference. Ronald Lauder, president of the World Jewish Congress, asked the conference for clarification about its handling of the June 2001 letter and established a task force to monitor the matter.
According to Merhav, a full report will be presented to the conference’s board of directors at its annual meeting July 9-10. — jta