In 2011 Israel launched Project HEART, an ambitious program to compensate survivors and their heirs for property lost during the Holocaust. Israel invested nearly $8 million in the project, and over the next three years it collected nearly 200,000 claims for about two million pieces of property, according to former project director Bobby Brown. And then, nothing. Former Project HEART administrator Anya Verkhovsaya, who once called its trove of documents “the largest archive ever” of its kind, said it provided restitution to none of its claimants. Families who invested hours and sometimes far more time gathering deeds for their lost...