US Senator Won't Keep Money From Arrested Son-In-Law Of Aaron Rubashkin

Rabbi Milton Balkany, who heads a Brooklyn religious school, was arrested in February, two months after he wrote two checks totaling $3,000 to Vitter's campaign committee.

Sen. David Vitter decides not to keep money from arrested rabbi
By Bruce Alpert • New Orleans Times-Picayune

Sen. David Vitter's campaign is donating to charity $3,000 it received from a New York rabbi who is accused of extortion, blackmail, fraud and making false statements.

Rabbi Milton Balkany, who heads a Brooklyn religious school, was arrested in February, two months after he wrote two checks totaling $3,000 to Vitter's campaign committee.

"As a leader in the Senate on Israel's right to defend themselves in the Middle East against bad actors like Iran, Sen. Vitter understands how important their sovereignty is for our own national security," Vitter spokesman Luke Bolar said. "Unfortunately there was a bad apple amongst the large group of supporters who chose to make a donation, and after the issue was brought to our attention it has been resolved by donating his money to a charity."

Vitter's campaign noted that the Republican senator is not the only elected official to get contributions from the rabbi, pointing to such past recipients as Democrats Vice President Joe Biden and Sen. John Kerry of Massachusetts. Most of Balkany's donations, however, have gone to Republicans, including former President George W. Bush and former Senate Majority Leader Bob Dole.

Balkany has been controversial in New York even before his February arrest.

In 2003, the rabbi was arrested on charges of misappropriating $700,000 in federal housing grants. Some of the money, according to prosecutors, ended up payable to companies in which his relative had interest and some went directly to Balkany. Charges were dropped when the rabbi apologized and made restitution.

President Bush's re-election campaign returned $6,000 in contributions from Balkany and his family in 2003.

But in 2004, Balkany and his family resumed campaign giving, joining his wife, Sarah, and son, Menachim, for a combined $5,000 donation to Vitter's first campaign for the Senate. That year, he and his family also donated $7,500 to the campaign of Florida Republican Sen. Mel Martinez, while his family members donated to such GOP Senate campaigns as Katherine Harris' in Florida and James DeMint's in South Carolina.

In the Justice Department's current case against Balkany, prosecutors released transcripts of phone conversations between the rabbi and a person he believed was president of a hedge fund. The person was actually a federal agent.

In one conversation, Balkany says he has been in contact with a federal prisoner who informed him he had knowledge of illegal insider trading by the hedge fund. He said he had influence over the prisoner, and wanted $4 million in contributions to his religious school and another school to convince the prisoner not to discuss the matter with government prosecutors.

During the conversation, Balkany says he is "not here to threaten." But he mentions how costly it would be for the firm if the prisoner talked to prosecutors, perhaps $20 million to $30 million just to mount a defense.

About the $4 million he was requesting, the rabbi said, "I don't consider it a lot of money."

Balkany remains free on bond. Neither, he nor his attorney Kelley Sharkey returned phone calls seeking a comment.

In addition to the $3,000 given Vitter in 2009, Balkany also contributed $4,000 last year to Sen. Patrick Leahy, D-Vt., and $2,000 to Sen. Sheldon Whitehouse, D-R.I.

Comments

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“David Lichtenstein, originally from the Boro Park section of Brooklyn. Living in Lakewood NJ for many years Mr Lichtenstein quickly became one of the wealthiest frum jews around. Known for his many tzedakas and employing many in the frum community many thought he was untouchable.” Emuna Magazine.

“Lichtenstein, founder of real estate investment firm Lightstone Group, ventured into banking by purchasing a controlling stake of Park Avenue Bank in 2004….” Forbes.

“David Lichtenstein … is now facing accusations of corporate waste and unjust enrichment involving a bank he partly owns. A minority shareholder in Park Avenue Bank has sued Lichtenstein, alleging he used a separate lending firm to siphon profits from the bank.” id..

“[R]egulators closed New York's small Park Avenue Bank and the FDIC was named receiver. Now, the former president, Charles Antonucci, has been arrested on allegations of self-dealing, bank bribery, embezzlement, and fraud on the New York State Banking Department, FDIC, and TARP….” Business Insider.

Insurance Company Goes Belly Up
Today, the Dallas Business Journal reported as follows: “Imperial Casualty and Indemnity Insurance Co. and its executives operated with ‘a pattern of complete and utter disregard for Oklahoma law’ and the insurance business is now financially insolvent, stated Oklahoma Insurance Commissioner Karen Holland in a court motion for a permanent receivership…. Imperial’s troubles started when its former holding company, Providence Property and Casualty Insurance Co., was sold in January 2009 to an affiliate of Park Avenue Bank, a small bank based in New York City. Park Avenue financed the purchase of Providence by borrowing against Providence’s own $56 million bond portfolio, according to the insurance commissioner’s office.” Dallas Business Journal

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[ruthie]

rabbi balkany's kids have so much spending money...always traveling....his kids are really good people...he did a good job. but he was a jerk for stealing....big time. and not giving a damn. it was all for his kids...and his kids are living well. i like his kids...he's....whatever.

[Meir]

Wow, even the guy who paid prostitutes to spank him while he wore a diaper doesn't want Balkany's money

[kasha varnishkas]

I hope he is ashamed of himself, criminal that he is.
I know plenty of rabbis who justify stealing, and the justification is, "If I can get away with it, its OK."

[insider]

What does David Lichtenstein have to do with this? Lichtenstein is a straight businessman, mostly succesful. Some business deals work out and some don't. Plainly, the people that were involved in deals that don't work out would be unhappy. You can't win them all !!! Lichtenstein is a smart businessman, incredibly charitable. But no one bats 1000%, especially in this grand economy.

[Pat]

Lichtenstein has a pattern of luring, lying to and looting investors with promises of returns and then syphoning off the money and ultimately offering little to buy them out.
See Prime Group Realty Trust and Lightstone REITS as examples.