474:′s Manhattan office in a conversation recorded by prosecutors, that SAC had inside tips about two companies which make medical devices and a company which makes molecular diagnostic products. SAC, which has since been riddled with insider trading convictions, had a SAC lawyer alert prosecutors to the extortion attempt, and a prosecutor said during the trial that Balkany "lied" and that there was no evidence of illegal trades. This was later proven untrue. SAC was involved in multi insider trading convictions and investigations. In February 2011, two former employees were charged with insider trading.
272:. In 2004, he was banned from making any contact with prison service officials. As part of the deal with prosecutors of the charity fund pilfering scandal he agreed not to lobby on "any matter involving a federal inmate or any other person charged or convicted of a federal crime." Prosecutors alleged that he would ensure favorable prison conditions for Jewish prisoners in exchange for money of donations to his charities. After he arranged a brief prison release for Helmsley so that she could visit family members' graves before
411:, Balkany helped corral for Orthodox Jewish schools more than half the city's total allocation of vouchers. Balkany offered a full-service operation, charging families a fee to fill out applications for the vouchers, which were in desperate demand all over the city. Nicholas Scoppetta, at the time serving as commissioner for children's services, was sufficiently disturbed by events to refer the matter to the city's Department of Investigation, which opened a probe that was later joined by federal investigators.
451:
approximately $ 80,000 to a variety of other rabbis and Jewish schools and organizations located in
Brooklyn. He also wrote out 32 checks against the Bais Yaakov account, totaling approximately $ 78,000, all made payable to "Rabbi Balkany" which were subsequently endorsed and either cashed or deposited into a personal account at another bank. He also used thousands of dollars in grant funds to pay for personal items such as life insurance premiums; credit card bills and income taxes.
191:, he has been active in political fundraising since the early 1980s, mainly for Republican politicians, and has also often acted as a lobbyist for various Jewish causes. Dubbed "the Brooklyn Bundler," he had a reputation as someone who had access not only to elected officials but to several government agencies as well. For several years, he gave the invocation at an annual dinner honoring President
703:
439:"Children's Center" had failed to file any of the regular progress reports required under rules and procedures of the grant. When auditors interviewed Balkany, he insisted the funds had been used to convert a Bais Yaakov building into the "Children's Center" but he refused to provide the auditors with access to the school's books and records, according to the Complaint.
305:"We have grave concern with a lot of things he is doing in the Jewish community under the auspices of being a senior staff member of Sen. Moynihan's, whenever an issue comes to his attention, he gets involved and does great harm. He's hurting individuals and hurting communities, he thinks he has a direct link to Sinai. I haven't accepted his word as God's word yet."
470:. Balkany received two checks totalling $ 3.25 million and was arrested shortly after. The complaint filed reported that he claimed that he could prevent a federal prisoner from telling U.S. authorities about alleged insider trading at the firm. According to court records, Balkany told an investigator with U.S. Attorney
489:
Despite these future disclosers which would support Rabbi
Balkany, on November 10, 2010, Balkany was found guilty of all charges. On February 18, 2011 he was sentenced to four years in prison. In March 2012 Balkany appealed his conviction, claiming that he should be allowed to present an entrapment
438:
In
November 2001, auditors began a preliminary investigation of a number of "Economic Development Initiative" grants that had been awarded in the New York metropolitan area, including the $ 700,000 "Children's Center" grant. In connection with the investigation, auditors allegedly learned that the
457:
In a deal with prosecutors in 2004, Balkany agreed to restrictions on his movement, six months probation, full restitution of the monies and admitted that he was wrong in not complying with specific terms of the grant's use. In return the State
Prosecutor's Office promised not to pursue the case.
446:
into which the grant money had been deposited. Those records reflected that all of the money received from HUD in
December 1999 had been withdrawn from the account by early February 2000, a two-month period in which Balkany wrote more than 250 checks drawn against the account. According to the
450:
Balkany diverted the funds to an array of individuals and entities who were not entitled to the earmarked funds. He diverted $ 300,000 to an
Israeli corporation in which his son-in-law was an officer, and another $ 5,000 to a New York import company run by another son-in-law. He also diverted
435:. According to the Complaint, he said that the entire grant amount would be used to pay off a mortgage on a building located on the Bais Yaakov property for an entity called "the Children's Center of Brooklyn" to house educational and therapeutic programs for disabled preschool children.
481:
Michael
Steinberg was arrested in March 2013 and accused of using inside information to make $ 1.4 million in profits for SAC Capital. In June 2013 nine former SAC employees were charged with conspiracy and securities fraud. With the conviction of
447:
Complaint, further investigation revealed that only one check, for approximately $ 6000, was used to pay down any of the pending mortgages against the Bais Yaakov property, which at the time of the grant totaled more than $ 1 million.
1136:
424:
On August 26, 2003, the US Attorney for the
Southern District of New York, announced that Balkany had been detained on charges that he misappropriated approximately $ 700,000 in federal grant money.
1126:
365:
for $ 200,000 over non-payment of fees related to his activism on his behalf. Riskin argued that he had never asked
Balkany to intercede with Dole on his behalf and refused to attend the hearings.
1121:
431:, a Jewish day school in Brooklyn, applied for, in November 1999, and later received a $ 700,000 Congressional "Economic Development Initiative" grant administered through the auspices of the
432:
352:. Despite the fast-tracking of the payment following an AID meeting with Dole, both Dole and AID denied that there was any excessive influence exacted on the organisation by the then
309:"Jewish tradition says that every Jewish soul was at Sinai, and I assume Rabbi Balkany's was there also. We may not have met because he might have been in the back, collecting money."
466:
On
February 18, 2010, Balkany was arrested and charged with extortion, blackmail, wire fraud and making false statements in a Federal Court in Manhattan. The hedge fund involved was
454:
Balkany was charged in the Complaint with theft of government property, filing a false claim, wire fraud and obstruction of justice and released on a bond of $ 750,000.
870:
303:, blaming him for having "caused yeshivas in the land of Israel to lose money." Moynihan refused to allow Luchins to attend the hearing. Balkany told the press that
576:
209:"I stand here today among the jewels of our nation, men and women who are precious, who radiate dedication, and they have been selected as the leaders of our land."
1101:
820:
336:
interceded on its behalf. Dole had been a beneficiary of Balkany's political fundraising and got involved after the proposal had first been rejected by the
1106:
1091:
477:
Balkany's assertions were further proven correct when in November 2012 federal prosecutors levied charges against additional former SAC Capital traders.
337:
195:, and was offered to become the rabbi chaplain of the Senate, an offer he declined. He became widely known for giving public religious benedictions (
224:
1131:
264:, several people who have dealt with him say that he has claimed the power to arrange favorable treatment in prison for individuals such as
491:
745:“Harris gifts tied to controversial fundraiser - She got 10 $ 2,000 checks from donors connected to a man known as 'the Brooklyn Bundler'”
780:
332:
In 1996 a request for $ 2.8 million in federal funding for a charitable project Balkany supported was accepted after then-U.S. Senator
31:
1096:
973:
199:) to senior politicians at city council, state legislature, and Congress, where he served as guest chaplain in June 2003, opening the
837:
381:. Harris refused to return the donations organised by Balkany after being made aware of the 2003 prosecution against Balkany and the
926:
854:
1049:
761:
317:
at Rabbi Ahron Soloveichik's suggestion to hear Balkany's charges against Luchins. The court, consisting of three highly respected
951:
888:
188:
907:
1081:
486:
on February 6, 2014 after a speedy four week trial, a total of eight former SAC Capital employees have been found guilty.
204:
1111:
1086:
223:
In 1987 Balkany became embroiled in a scandal after soliciting politicians to approve a $ 1.8 million grant from the
518:
727:
685:
664:
1116:
340:(AID). The request was in relation to funding to set up computer training programs in Russia, run by the Yeshiva
669:
523:
549:
397:
Balkany became a key figure in the distribution of day-care vouchers in New York due to his close ties with
1032:
808:"U.S. charges Brooklyn Rabbi in scheme to divert federal grant money intended to aid disabled preschoolers"
1076:
353:
248:
184:
135:
407:
602:
744:
402:
1071:
443:
119:
686:"Moynihan Tells Aide to Boycott Rabbinic Court: Luchins, Haled to Bet Din,. Could Be Excommunicated"
766:
708:
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318:
314:
123:
95:
629:
607:
478:
624:
374:
84:
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704:“Dole Fund-Raiser Got Helping Hand; Project Proposal Won Grant After Initial AID Rejection”
665:"Republican Rabbi Tries New Political Tactic: Plan to Haul Moynihan Aide Before a Beit Din"
643:
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296:
293:
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139:
762:“Rabbi's big day care coup; B'klyn communities with pull score most vouchers from City”
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111:
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285:
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321:
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235:. Department officials later asked for the return of the money to the government.
134:
Balkany is married to Sarah Rubashkin with whom he has 13 children. They live in
810:, United States Attorney for the Southern District of New York, August 26, 2003.
467:
428:
269:
232:
200:
143:
89:
273:
644:“Jail Breaks Influential Rabbi Barred From Lobbying Federal Prison Officials”
114:
and his mother worked as a typist. He left public school and went to a local
442:
Subsequently, investigators obtained records for the Bais Yaakov account at
349:
30:
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defense. The appeal was rejected and the original conviction upheld by the
807:
361:
333:
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51:
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107:
47:
855:“Rabbi is Charged with Trying to Extort $ 4 Million from a Hedge Fund”
994:
625:"Rabbi Bunco - An Ally of Senators and Mayors Is Charged With Fraud"
952:"Hedge Fund Manager Michael Steinberg Charged With Insider Trading"
373:
In January 2005, there was some controversy over donations made to
146:
974:"Judge Sets SAC's Martoma Trial for Inside Trading to November 4"
821:“Rabbi Accused of Stealing Grant Intended for Disabled Children”
382:
1137:
Prisoners and detainees of the United States federal government
838:“Rabbi Will Not Be Prosecuted In Theft of Federal Grant Money”
377:
by members of Balkany's extended family including the CEO of
1033:“Rabbi Given Four Years in Prison in SAC Extortion Attempt”
276:, the billionaire made a contribution to Balkany's school.
433:
United States Department of Housing and Urban Development
577:“About New York; Man With Pull Gets a Bundle Of Trouble”
781:“Distribution of Vouchers For Day Care Is Scrutinized”
94:, conservative political activist and fundraiser from
927:"SAC Settles Insider Trading Cases for $ 614 Million"
1127:
American people convicted of making false statements
995:"SAC still on hook in insider trading probe: Source"
871:“Holder Says Justice Department Probing Wall Street”
385:
investigation into allegations of animal cruelty at
889:"Insider Inquiry Steps Up Its Focus on Hedge Funds"
760:Tom Robbins, Larry Cohler-Esses and Joe Calderone:
603:“Getting a U.S. Grant--How the System Really Works”
519:"The Rise, Then The Fall of GOP's 'National Rabbi'"
292:, self-described liberal, and then aide to Senator
87:Jewish, past director of the Jewish girls′ school
66:
58:
40:
21:
1122:American members of the clergy convicted of crimes
1016:“Brooklyn Rabbi Is Convicted of Extortion Attempt”
908:"Insider Inquiry Inching Closer to a Billionaire"
728:“Dole Emerging at Center Of Dispute Over Yeshiva”
348:, a controversial rabbi in the Israeli occupied
497:He was partially released on Wednesday 9/4/13.
8:
512:
510:
110:, where his father was a stock manager for
887:Lattman, Peter; Ahmed, Azam (2011-02-08).
543:
541:
29:
18:
427:Balkany as the President and Director of
338:U.S. Agency for International Development
324:, dismissed all charges against Luchins.
187:, and served as its dean. A conservative
722:
720:
718:
619:
617:
517:Josh Nathan-Kazis (November 12, 2010).
506:
313:In March 1995, a Rabbinic Court met at
225:Department of Health and Human Services
183:, a strictly orthodox girls′ school in
658:
656:
597:
595:
593:
591:
359:Balkany subsequently sued Riskin in a
1102:People from Beverly Hills, California
663:Jeffery Goldberg (January 14, 1994).
548:Allison Hoffman (December 16, 2010).
7:
803:
801:
799:
797:
795:
793:
492:U.S. Second Circuit Court of Appeals
420:Misappropriation of charitable funds
155:and the founder of the now bankrupt
288:, an Orthodox Jew, official of the
175:In September 1960, Balkany founded
1107:People from Borough Park, Brooklyn
1092:Orthodox rabbis from New York City
118:, and later with a scholarship to
14:
684:Matthew Dorf (January 28, 1994).
98:, dubbed "the Brooklyn Bundler."
284:In 1994, Balkany tried to have
16:American rabbi and extortionist
1050:“Shakedown rabbi loses appeal”
877:, Bloomberg, November 29, 2010
405:. According to reports in the
1:
1054:New York Post, March 19, 2012
925:Lattman, Peter (2013-03-15).
906:Lattman, Peter (2012-11-20).
205:U.S. House of Representatives
1132:21st-century American rabbis
692:. (Online at FailedMessiah).
673:. (Online at FailedMessiah).
415:Criminal charges and trials
159:and meat-packaging factory
83:(born 1946) is an American
44:1946 (age 77–78)
1153:
251:to improve conditions for
1097:New Right (United States)
976:. JD Journal. 6 June 2013
231:to acquire a building in
74:
28:
138:. His father-in-law was
875:San Francisco Chronicle
307:Luchins responded that
177:Bais Yaakov of Brooklyn
81:Milton Yehoshua Balkany
1082:American extortionists
354:Senate Majority Leader
301:Jewish religious court
249:U.S. Bureau of Prisons
181:Bais Yaakov of Midwood
136:Borough Park, Brooklyn
35:Milton Balkany in 1981
356:on Balkany's behalf.
861:, February 19, 2010.
844:, February 24, 2004.
749:St. Petersberg Times
702:Serge F. Kovaleski:
462:Hedge fund extortion
444:Chase Manhattan Bank
229:Yeshiva Rav Isacshon
219:Yeshiva Rav Isacshon
106:Balkany was born in
1112:Clergy from Detroit
1039:, February 18, 2011
1037:Wall Street Journal
1022:, November 10, 2010
787:, January 30, 2000.
767:New York Daily News
734:, January 19, 1996.
709:The Washington Post
633:, September 3, 2003
550:"Tribal Allegiance"
258:. According to the
1087:American lobbyists
1020:The New York Times
997:. CNBC. 2014-02-07
912:The New York Times
893:The New York Times
859:The New York Times
842:The New York Times
825:The New York Times
785:The New York Times
770:, January 23, 2000
751:, January 27, 2005
582:The New York Times
319:Yeshiva University
315:Yeshiva University
124:Brooklyn, New York
96:Brooklyn, New York
1014:Anahad O'Connor:
853:Anahad O'Connor:
827:, August 27, 2003
819:Benjamin Weiser:
779:Somini Sengupta:
726:Lucette Lagnado:
648:The Village Voice
630:The Village Voice
611:, August 14, 1989
608:Los Angeles Times
585:, August 30, 2003
479:Portfolio manager
243:Balkany has also
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403:Bruce Teitelbaum
393:Daycare vouchers
375:Katherine Harris
369:Katherine Harris
207:with the prayer
33:
19:
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294:Daniel Moynihan
282:
253:Orthodox Jewish
241:
239:Prison lobbying
221:
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173:
165:Postville, Iowa
140:Aaron Rubashkin
132:
122:, a yeshiva in
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931:New York Times
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836:Susan Saulny:
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484:Mathew Martoma
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387:Agriprocessors
379:Agriprocessors
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322:Roshei Yeshiva
297:excommunicated
290:Orthodox Union
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266:Leona Helmsley
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161:Agriprocessors
157:slaughterhouse
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112:General Motors
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642:Tom Robbins:
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472:Preet Bharara
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401:and top-aide
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399:Rudy Giuliani
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346:Shlomo Riskin
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286:David Luchins
280:David Luchins
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261:Village Voice
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999:. Retrieved
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956:. Retrieved
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934:. Retrieved
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601:Sara Fritz:
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559:. Retrieved
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528:. Retrieved
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1072:1946 births
1031:Chad Bray:
732:The Forward
690:The Forward
670:The Forward
575:Dan Barry:
524:The Forward
468:SAC Capital
429:Bais Yaakov
270:Eddie Antar
233:Los Angeles
201:U.S. Senate
144:Lubavitcher
90:Bais Yaakov
59:Nationality
1066:Categories
1001:2014-02-07
980:2013-10-15
954:. ABC News
501:References
408:Daily News
274:Yom Kippur
189:Republican
171:Activities
102:Early life
92:of Midwood
67:Occupation
350:West Bank
344:of Rabbi
342:Ohr Torah
256:prisoners
163:based in
958:29 March
936:15 March
362:Beit Din
334:Bob Dole
328:Bob Dole
203:and the
150:Brooklyn
85:Orthodox
62:American
52:Michigan
561:May 22,
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