Rabbi Accused of Extorting Millions from Hedge Fund

A rabbi known as the "Brooklyn Bundler" for his ability to raise campaign money for (mostly) Republican candidates was charged on Thursday with trying to extort $4 million from a Connecticut hedge fund. Rabbi Milton Balkany, who serves as the dean of the Bais Yaakov day school in Borough Park, allegedly dreamed up the scheme after becoming a "spiritual adviser" to a federal inmate who told him about a Connecticut hedge fund that had used inside information in stock trades. Prosecutors say Balkany told lawyers at the hedge fund that unless they handed over $4 million ($2 million of which would go to Bais Yaakov), he'd instruct the inmate to rat them out. But Balkany insists he's just being punished for doing a mitzvah!

"Seven or eight years ago I was accused of wrong-doing and the government had to back off then," Balkany told reporters yesterday as he left court on $250,000 bond. "This is much more ridiculous. When you are in public service that's the price you pay. An innocent man is constantly dragged through the mud. This is from helping an individual in jail. He got a very lengthy term and I was trying to reduce it. I was in touch with the U.S. Attorney's office the whole time." The U.S. Attorney... so important.

Yesterday the feds got audio and video recordings of Balkany and the hedge fund lawyer as Balkany accepted two checks from the hedge fund; $1.25 million for Bais Yaakov and $2 million for Torah Vodaath, another Yeshiva school. He was arrested later that afternoon. He's charged with wire fraud, extortion, blackmail and making false statements. According to the TImes, the wire fraud count a sentence of up to 20 years.

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By John Del Signore in News on February 19, 2010 5:32 PM

Comments [rss]

wingedearth

This is why there is a reform movement in Judaism, and why Orthodox adherence to the religious texts is problematic:

"A goy is forbidden to steal, rob, or take women slaves, etc., from a goy or from a Jew. But a Jew is NOT forbidden to do all this to a goy." - Talmud, Tosefta, Abda Zara VIII

"Jews May Steal from Non-Jews." - Talmud, Baba Mezia 24a .

"If a Jew finds an object lost by a Gentile ("heathen") it does not have to be returned." - Affirmed also in Baba Kamma 113b.

rapscallion

Dude was extorting a hedge fund that engages in insider trading ... I don't really feel sorry for anyone here, but kinda wish he pulled it off.

S.K.

Some religious schools hold bake sales and wash cars to make ends meet, but Bais Yaakov of Boro Park extorts funds from crooked hedge funds.

nycraf

Rabbi looks like Donald Sutherland.

blink

A Rabbi, a thief AND a republican... there goes the myth.

Powerhugs

A Rabbi gone mad

ex-Brooklynite

My brother goes to Yeshiva Torah Vodaath! Damn, imagine if they would've gotten that $2 million and built some sports facilities... This is definitely not good for the Jews!

NannyState

Well, that's one more empty seat on the weekly red-eye to Zurich...

lucy van pelt

This so totally inconceivable! a jew... a rabbi... misappropriating millions???

freddynyc

Is this gentleman of the same denomination as Mr. Bernie Madoff?

Snoopy

I don't think so. This guy was into millions, Madoff was into billions.

FelixtheCat & Christine Quinn'

lol

lucy van pelt

LOL

Splicer

I am completely shocked by this.

farleft

He was chosen by God to go to jail.

Rocko

Is that the hisidic regae artist?

Mr Mel

Please use the Spell Check feature.

Snoopy

You tell him Mel. It's spelled "Acidic" with a silent CH sound.

ed_Extinct

...and Donald Sutherland just got cast as the lead in the made-for-tv movie.

Snoopy

He is totally screwed. I heard B&H Photo just fired him from his night job stocking shelves in the digital camera section at their Brooklyn warehouse.