Legal Issue:
Holocaust Victims and Heirs' Recovered Funds
"Jewish Holocaust Survivors Frustrated by Swiss Banks"
(Law students in Virginia collected questionnaires of Holocaust victims and their families to ascertain where the money belongs)
(A chronology of the events that occurred in relation to Swiss banks and Holocaust victims' money)
Holocaust victims and their families/heirs began to file suits and speak out against Swiss banks who held money from WWII that belonged to or was stolen from Holocaust victims. When the victims would go to these banks to retrieve the stolen money, they had difficulties. The banks would require death certificates of the victims, which were rare during the Holocaust and efforts to keep the finds. Lawsuits were filed against the banks alleging that the banks knowingly kept and held assets of Holocaust victims and also alleged that the banks aided the Nazis by holding looted and illegally obtained money including slave labor profits. The banks agreed to a settlement in 1998 that stated that the banks would pay $1.25 billion to end the suits claiming they withheld money. The settlement also ensured the lawsuits would be dropped and those who threatened sanctions on the banks would stop. The Swiss "Claims Resolution Tribunal" oversaw the payouts and was then disbanded in 2012. $726 million has been paid out to victims and heirs, where most of the money was related to 4,600 dormant accounts. For assets and accounts that could not be one hundred percent solidified as correct, $5000 was given. This applied to around 12,300 cases. Virginia law students assisted in the class action lawsuits and the recovering of assets. The Swiss Banks had difficulty in tracing victims and their families as survivors were and their families as survivors were scattered throughout Europe after they were freed. By 2009, most of the money had been paid out. Money that was stolen had been accounted for and compensation for the labor at displaced persons camps. Investigations led by the Swiss government also revealed more controversy on Switzerland. They found that some Swiss banks bought Nazi Gold during the war and that Jewish refugees were turned away from Swiss borders-seemingly to maintain neutrality. Edward Korman, a judge from New York who oversaw the management of the funds, concluded that the investigations and payouts and said that there was "a conspiracy among the Swiss banks to stonewall heirs of survivors who were making claims to Swiss bank accounts, and, specifically, those which had been improperly transferred to the Nazis.(2009)" As of 2012, two Israelis were to file lawsuits against two Swiss Banks for allegedly refusing to return their money to them. They filed these lawsuits in US Courts in order to use US law that allows them to sue foreign states for matters concerning the Holocaust. They alleged that they were lied to and cheated out of money from the banks and denied access to information about their loved ones
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It is a shame that the victims and their families have had such a hard time acquiring the money that was taken from them and the money they deserve. It is important to also consider the fact that the Swiss banks also had a little bit of a challenging task of returning the billions of dollars that they held from the war. This, however, does not take away the fact that they made it challenging for the heirs and victims to claim their money.