In 2004, the New York State Attorney General's Office began an investigation into the WJC. The AG's Office issued a report in 2006 that found "serious financial mismanagement" at WJC, including improper payments and loans to Singer. Under an agreement between the Attorney General's Office and WJC, Singer was barred from the organization's leadership roles and returned several loans and payments, and the WJC undertook reforms. The WJC subsequently filed a $6 million defamation suit against Leibler in the Israeli courts but withdrew the action less than six months later, and were ordered by the court to pay Leibler's legal expenses. A PricewaterhouseCoopers audit in 2006 submitted by the WJC to the AG's Office found that the financial scandal was "significantly broader than has been publicly known," with some $3 million unaccounted for from 1994 to 2004. Leibler, described by the Jewish Daily Forward as the "most persistent critic" of the WJC, said that these findings were not surprising.
