Feds bust 17 in $42M Holocaust fund theft

Federal authorities in New York say two funds created to provide relief for cash-strapped Holocaust survivors were raided for more than $42 million with the help of several people who were supposed to administer the funds.

U.S. Attorney Preet Bharara described the long-running scheme Tuesday as he announced charges in federal court in Manhattan against 17 people, including the former director of the funds.

The prosecutor says six employees of the Conference on the Jewish Material Claims Against Germany were among those charged.

He says they created thousands of false applications and duped people into applying who were not eligible so everyone could share funds that never should have been spent.