Thursday, November 11, 2010

$4M scam rabbi guilty 

A Brooklyn rabbi was convicted yesterday of trying to shake down a top hedge fund for $4 million.

Rabbi Milton Balkany faces more than 20 years for his scheme against mega-investor Steve Cohen's SAC Capital Advisors, which worked with the feds to secretly tape Balkany offering to cover up phony insider-trading allegations against the $16 million firm.

Prosecutors had told jurors that Balkany targeted Cohen in the unholy scam because he was "Jewish and . . . rich."

Several of Balkany's 13 children sat ashen-faced and teary-eyed after the jury convicted him on all counts in Manhattan federal court.

Judge Denise Cote increased Balkany's bond to $1 million and gave him until Monday night to wind up affairs at his Bais Yaakov girls school in Brooklyn. He's to surrender to house arrest pending sentencing Feb. 18.

Balkany -- who won dismissal of an earlier fraud case by paying back $700,000 in misspent government grants -- declined to comment. His lawyer, Benjamin Brafman, said he was "disappointed" and would "continue to litigate the important issues."


Truth be told, Balkany supported a large amount of Mosdos and Kollels and people. [His door was always open to someone in need of a Shabbos/Yom Tov meal.] So on the one hand it is a shame to see this happen to him. On the other hand there has always been this lingering doubt regarding how kosher his money is/was. He has been known to lie and stretch the truth in court and in person while still believing in the ends justifies the means. The problem is that so many people out there want to also do "good things" for the populace that they don't realize the ends does NOT justify the means. If everyone would be more honest and just pretend for a few minutes that there realy is an Olom HaEmes, I think we would have less fake millionaires and boys only wanting a rich shver and Simchas that one can only envy. Anyway, Rabbi B we'll see you again in the shuls in Boro Park in about 10 years or less (due to good behavior).


Correction: The Rabbi and Rebbetzin have 14 children.


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