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Neal Sher hunted Nazis for the Justice Department. He lobbied on Israeli and Jewish issues as head of the powerful American Israel Public Affairs Committee, or AIPAC. And most recently, he worked to ensure that families of Holocaust victims collect on their insurance policies. Now, the 56-year-old Sher is unemployed. And, on Aug. 28, the U.S. Court of Appeals for the D.C. Circuit stripped him of his D.C. law license. The move comes roughly one year after Sher conceded he had made “unauthorized reimbursements” of travel expenses from the International Commission on Holocaust Era Insurance Claims, where he served as its chief of staff. He resigned from that position in June 2002. Sher says he has made restitution to the commission, but remains defiant about the disbarment, saying he feels unfairly targeted by the D.C. Bar. “To me, and to others I’ve talked with, this is overkill,” Sher says. To many who know him, Sher’s free fall comes as a shock. “It’s a tragedy,” says Elan Steinberg, former executive director of the World Jewish Congress and a current member of its executive committee. “I think everybody agrees it’s a tragedy.” “I have known Neal for 25 years,” says Stuart Eizenstat, a partner at D.C.’s Covington & Burling who served as special representative for President Bill Clinton on Holocaust-era issues. “I can only say it’s a real tragedy, and I think it is an exception to the decades of [Sher's] service to the country and to the Jewish community.” Sher consented to disbarment in the District before any ethical charges had been filed, thereby leaving no public record of why his law license was revoked. A court order in a Virginia state court where Sher’s divorce is pending prevents any of the lawyers, parties or witnesses from “disclosing and/or disseminating” any information concerning Sher’s resignation from the Holocaust commission. In a Sept. 3 statement to Legal Times, former Secretary of State Lawrence Eagleburger, who chairs the Holocaust commission, wrote that Sher resigned from the commission after admitting to “unauthorized reimbursements of [commission] travel expenses.” According to Eagleburger, Sher informed the commission of what he had done last summer, and an internal probe was launched. “Mr. Sher was open with [the commission] and cooperated fully in [its] investigation,” wrote Eagleburger, noting that Sher made “immediate and full restitution,” including the payment of attorney fees incurred by the commission. “Unfortunately, the price Mr. Sher paid has continued to grow,” wrote Eagleburger, adding that he did not believe that the D.C. Bar needed to take any action. Eagleburger did not state how much money was allegedly taken. Sher, in an interview, concedes he made “mistakes,” but refuses to discuss what he did wrong, saying it was a “private” matter. Sher says he agreed to the disbarment because he didn’t have the money to hire a lawyer. “I was not in the position — for primarily financial reasons — to fight this,” says Sher, adding that he estimates it would have cost him $100,000. Sher, who says his New York Bar license remains intact, adds that D.C. Bar ethics officials opened an investigation into the matter without a complaint being filed. Bar officials may have launched their investigation of Sher after seeing a November 2002 Forward newspaper article detailing his dismissal from the commission. Sher says Bar officials attached a copy of that article in a query that was sent to him. “I think that during my career I’ve been involved in some very important and historic matters and made significant contributions to justice — at least that’s how many people have portrayed my career,” Sher told Legal Times. “In light of my history, years of service and all the circumstances, I cannot help but feel that this is terribly unfair — to be subjected to the capital punishment of the legal profession.” The Office of D.C. Bar Counsel declines comment. It is not unusual for the office to open an investigation after learning about potential ethics violations in the press. In the District, lawyers can be disbarred for a number of reasons. Stealing money is considered one of the most serious offenses and in most cases leads to a lawyer’s license being yanked. Any attorney who has been disbarred may seek reinstatement after five years. VIEW FROM THE TOP Sher made a name for himself hunting Nazis. In 1979, the New York University School of Law graduate joined a brand-new Justice Department unit called the Office of Special Investigations. There, he tracked Nazis who had entered the United States after World War II and worked to have them stripped of their citizenship and deported. In 1983, Sher became director of the 20-lawyer OSI, and the office logged several high-profile matters under his watch. For example, the office persuaded the Justice Department in 1987 to put then-Austrian President Kurt Waldheim on a watch list barring him from entering the United States after compiling evidence that the former German army official had been aware of atrocities against Jews and did nothing to stop them. Waldheim, who was the United Nations secretary general from 1972 until 1982, disputed the claim and argued that the DOJ was relying upon false information. Other OSI cases included a former NASA official who allegedly persecuted Jews while working for Germany’s weapons program from 1943 to 1945; a retired factory worker in Connecticut who was accused of being a former Nazi death camp guard; and a Jew who admitted to beating other Jews at a German concentration camp. But the office under Sher’s leadership also came under scrutiny. Two cases in particular — those of John Demjanjuk and Andrija Artukovic — left the impression to some observers that Sher and his staff played up scurrilous evidence against targets while ignoring exculpatory information. Demjanjuk, a retired Cleveland auto worker, was accused of being a notorious Ukrainian concentration camp guard in Poland who was known as Ivan the Terrible. In 1982, Demjanjuk was stripped of his American citizenship in the face of allegations that he helped operate the gas chambers at Treblinka. In 1986, he was extradited to Israel, where he was convicted and sentenced to hang. But during Demjanjuk’s appeals process, information casting doubt on his identity as the infamous Ivan came to light. And it became known that Sher’s unit had possessed the information for more than a decade. In July 1993, the Israeli Supreme Court acquitted Demjanjuk of all charges. The 6th U.S. Circuit Court of Appeals subsequently blasted the Justice Department by stating that OSI attorneys “acted with a reckless disregard for the truth.” In 1994, Sher left Justice after being picked as executive director of AIPAC. The Jewish Advocate blessed the pick, noting that Sher excelled as a communicator and administrator. During his two-year tenure, AIPAC was instrumental in the passage of anti-terrorism legislation and in increasing foreign aid to Israel. AIPAC also was a strong supporter of legislation requiring the United States to move its embassy in Israel from Tel Aviv to Jerusalem — a move that never happened. Sher, however, abruptly stepped down in 1996, claiming that he wanted to work in academia. Some reports claimed that Sher was forced out by the group’s directors, who were unhappy with his performance. Sher soon joined the World Jewish Congress as a D.C.-based consultant, seeking Holocaust reparations for survivors and their families. A year later, Sher joined D.C.’s Schmeltzer, Aptaker & Shepard as a partner, where he reportedly was to focus on litigation, independent counsel investigations and government relations. He also became president of the American Section of the International Association of Jewish Lawyers and Jurists. In 1998, several European insurance companies reached an agreement with Holocaust survivor groups, state insurance commissioners and the Israeli government to pay the families of Holocaust victims, who had earlier been denied insurance benefits. The insurance companies pledged millions of dollars, and the International Commission on Holocaust Era Insurance Claims was created to help evaluate claims and disburse the money. Sher was hired as its chief of staff. The commission came under fire early on for taking too long to process claims and for its refusal to make its finances public. In May 2001, the Los Angeles Times, citing internal commission documents, claimed that the commission had spent $30 million on salaries and outreach efforts, while paying out just $3 million. Later that year, a House committee held hearings at which Rep. Henry Waxman, D-Calif., threatened to subpoena commission records. Commission Chairman Eagleburger, however, maintained that Congress had no authority over the group. For the most part, Sher remained behind the scenes while working for the commission until his resignation in June 2002. LIFE UNDONE Sher’s life began to unravel early last year. In April 2002, he filed for divorce from his wife of 13 years in Virginia’s Fairfax County Circuit Court. He obtained a restraining order against Grazia Sher, claiming that she assaulted him on several occasions and threatened to kill him. Grazia, meanwhile, claimed in court papers that Sher was having an affair with an art appraiser in Toronto and that she had the evidence to prove it. According to a transcript of a hearing in the divorce case on file in the Fairfax court, Grazia hired a private detective to follow Sher on a trip to Toronto on Valentine’s Day 2002. Three private investigators videotaped Sher being picked up at the airport by a woman and then taken to a private residence. Sher and the woman then spent the night together at a Toronto hotel. Sher admitted to the affair, according to court papers. Court filings also note that Grazia Sher suffers from mental illness and that she was hospitalized for two weeks because of depression. “She became depressed when she learned her marriage had fallen apart because her husband was unfaithful,” says Virginia divorce lawyer Mark Sandground Sr., who represents Grazia Sher. “She’s still emotionally devastated.” Grazia Sher declines comment. Two and a half months after the divorce was filed, The Baltimore Sun published a lengthy investigative article on the commission’s expenditures. The article, which relied upon internal commission documents, reported that Sher had claimed to spend $136,653 in travel expenses in 1999. The article stated that the airfare alone for trips to Rome and Berlin often was $5,000 or more per trip. The article also noted that Sher had quit the commission just a few weeks prior to the article’s publication. Some details about what happened between Sher and the commission are still unclear. Eagleburger, in his statement to Legal Times, said that Sher was placed on administrative leave after admitting to the improper travel expense reimbursements. The commission’s outside counsel, Thomas Howard of the D.C. office of Ballard Spahr Andrews & Ingersoll, conducted an internal investigation. Howard’s findings were then reviewed by one-time FBI director and former federal Judge William Webster III of the D.C. office of Milbank, Tweed, Hadley & McCloy. Sher paid back the commission, including the money it cost for the group to conduct the inquiry, and quietly resigned. According to Eagleburger, Webster recommended that no further action be taken. The D.C. Bar opened an investigation earlier this year, and Sher consented to disbarment late last month. Sher declines to talk about what happened, except to say that he came forward, admitted to Eagleburger what he had done, and then made full restitution. Sher declines to say how much money was involved or where he obtained the funds to pay back the commission. Sher also refuses to talk about his divorce, which is scheduled to be finalized later this month. He says he has had no consistent employment since leaving the commission more than a year ago. “There’s a lot of things that I’ve been trying to do, but I’ve made no money at all,” Sher says. “I’ve been unemployed. I’m getting no paychecks — nothing.”

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