Woman pleads guilty to defrauding aid fund

• Tweet

NEW YORK, June 6 (UPI) -- A clerk in the New York office of the Conference on Jewish Material Claims Against Germany pleaded guilty to defrauding the organization out of $550,000.

Zlata Blavatnik, 65, admitted that she had "produced falsified documents for myself" and "helped others in the same office" to dispense reparation money to those who did not qualify.

A federal investigation revealed 10 former employees to be in on the scam for more than 10 years, "systematically" ripping off $57 million from the fund, meant for Nazi victims. Thirty-one people have been charged so far.

Blavatnik could face a possible 40 years in prison for conspiracy and mail fraud. The New York Post reported she may be cooperating with authorities in a bid for leniency.

The Claims Conference aids impoverished Holocaust survivors with monthly payments of $400, and also offers one-time payments of $3,500 to those who escaped Germany before the Holocaust.