NEW YORK – A former caseworker and employee of the Conference on Jewish Material Claims Against Germany, Inc. (the “Claims Conference”) who participated in a $57 million fraud scheme targeting programs administered by that organization that were established to aid the survivors of Nazi persecution, was sentenced today in Manhattan federal court to 18 months in prison. Polina Breyter pled guilty in May 2012 to one count of conspiracy to commit mail fraud.

“Polina Breyter played a central role in a multi-million dollar fraud scheme perpetrated against an organization whose sole mission is to provide relief to victims of Nazi atrocities”, said Manhattan U.S. Attorney Preet Bharara. “Eighteen of 31 people charged have now pled guilty and face the same prospect of prison as a result of this wide-ranging fraud.”

The Claims Conference, a not-for-profit organization that provides assistance to victims of Nazi persecution, supervises and administers several funds that make reparation payments to victims of the Nazis, including “the Hardship Fund” and “the Article 2 Fund,” both of which are funded by the German government. Applications for disbursements through these funds are processed by Claims Conference employees in the Manhattan office, who are supposed to confirm that the applicants qualify for payments.

As part of the charged scheme, a web of individuals systematically defrauded the Article 2 Fund and Hardship Fund programs for over a decade. The Claims Conference first suspected the fraud in December 2009 and immediately reported their suspicions to law enforcement, which conducted a wide-reaching investigation.

The Claims Conference has determined that at least 1,112 Article 2 Fund cases it processed have been determined to be fraudulent. Those cases have resulted in a loss to the Claims Conference of approximately $45 million.

Since 2010, a total of 31 individuals have been charged with participating in the scheme to defraud the Article 2 Fund and Hardship Fund programs. Eighteen defendants, including Breyter, have pled guilty, and five of those defendants have been sentenced. Charges remain pending against 13 defendants in the case, and they are presumed innocent unless and until proven guilty.

In addition to her prison term, Breyter, 69, of Brooklyn, was sentenced to one year of supervised release, and ordered to forfeit $22,000 and pay restitution in the amount of $461,875.65.