Aaron Rubashkin's Son-In-Law Preyed On, Extorted "Rich Jew," US Attorney Tells Jury

Defense lawyer Benjamin Brafman countered that Rabbi Balkany -- who won dismissal of an earlier fraud case by paying back $700,000 in misspent government grants -- had not committed extortion and had merely engaged in a "stupid plan" to help two cash-strapped haredi schools in Brooklyn.

Brooklyn rabbi preyed on 'rich Jew': feds
By BRUCE GOLDING • New York Post

A Brooklyn rabbi ran an unholy scam on a $16 billion hedge fund -- because he knew that its founder was "Jewish and . . . rich," a prosecutor told jurors yesterday.

Rabbi Milton Balkany demanded $4 million from SAC Capital Advisors founder Steven Cohen by threatening that a prison inmate he was counseling would go to the feds with insider-trading allegations against the firm, Manhattan federal prosecutor Jesse Furman said.

Balkany -- whose "statements were lies, pure and simple," according to Furman -- was videotaped pocketing checks from an SAC lawyer and saying "that Mr. Cohen and SAC were in the clear," Furman said in the extortion trial's opening statement.

Defense lawyer Benjamin Brafman countered that Balkany -- who won dismissal of an earlier fraud case by paying back $700,000 in misspent government grants -- had merely engaged in a "stupid plan" to help two cash-strapped Orthodox schools in Brooklyn.

He added that the feds and SAC lawyers used "scripted" conversations to "keep [Balkany] coming back and talking, so that, eventually, they'd conclude he committed a crime."

"You want to find him guilty for using bad judgment?" Brafman asked. "For that, we plead guilty today."

The first school Balkany was allegedly stealing for is his own, Bais Yaakov. The second? Yeshiva Torah Vodaath, i.e. Torah Vodaas, the yeshiva headed by the OU's co-head posek, Rabbi Yisroel Belsky.

The OU stood behind Sholom Rubashkin during his trials and his federal sentencing, going as far as saying Rubashkin – who committed bank, wire and mail fraud and who laundered money – got a "raw deal.…If anyone is deserving of sympathy, support and leniency, it is Sholom Rubahskin." Rabbi Menachem Genack also noted that Rubashkin "never fleeced a single customer." Rabbi Genack, however, doesn't say the same about Rubashkin's employees and his competition, all of whom were fleeced by Sholom Rubashkin.

One might wonder if some of the OU's support for Sholom Rubashkin came because of pressure from Rabbi Yisroel Belsky, who was in turn paid for his help by Rabbi Milton Balkany.

Rabbi Milton Yehoshua Balkany Index of Posts.

Comments

[chaim36]

This family continues to get into trouble.Who is paying these legal fees ?

[blair thomas]

the ou/tora vodaath connection would only be made by an outsider who has no real understanding of how things work, much like yourself. Common knowledge is that the tora vodaath board is unhappy with HaRav belskys work for ou.

[seymour]

it doe seem to be a crime family. will he be made out to be a holy person like smr by the frum community

[D S Esq.]

So the OU is part of some inner chareidi criminal cabal? What's next? Let me guess, Rabbi Avi Weiss is actually the Capo di tutti capi of the whole organization!!! Get a life dude.

[Solomon Dwek]

I cannot believe that Ben Brafman is taking this loser of a case to trial. The Ben Brafman of the 90s would have settled this quickly and quietly.
Does Ben actually think that he can win this? The feds have Miltie dead to right.
I guess a huge retainer check warps one's perspective. This trial will have to cost mispachat Rubashkin $3-$5 Million. Yes, Million.

[effie]

Solomon: He can't force his client to plead guilty. Doesn't look like he is going to beat the rap this time around.

[Menachem Mendel lll]

IF Rabbi Milton Balkany and thinks he can pull a fast one over the legal system by praying to Ha'shem reciting Psalms 4 he's in for a big surprise!

ב בְּקָרְאִי, עֲנֵנִי אֱלֹהֵי צִדְקִי--בַּצָּר, הִרְחַבְתָּ לִּי; חָנֵּנִי, וּשְׁמַע תְּפִלָּתִי.

[D S Esq.]

What is the connection between Balkany and Rubashkin?

[Solomon Dwek]

Milton is a brother in law of The Rubashkin dude.

[steve]

had merely engaged in a "stupid plan" to help two cash-strapped Orthodox schools in Brooklyn.

What a stupid defense. This will get him as far as his brother-in-law's similar defense that he was a naive kid from Brooklyn that didn't know he was stealing $35M from the bank.

[Barry]

The die has sbeen cast. This GANIFF belongs in jail along side SMR.
It seems these people have a genetic deficincy. They all become croks. Where did this so called Rabbi study? He is a disgrace to his people, Yeshiva, and mankind.
Is this what we have teaching our children in Yeshivas today. Where is the sense of palin old Torah study? The old time Ravs, who held their heads high, had moral compasses to do good and what was right.
We have generations of children who are lost at sea for the lack of leadership, quality Ravs, Sages and people with ETHICS.

[danny]

Hey check it out... I found FailedMessiah's Mormon equivalent:

http://latterdaymainstreet.com/

[effie]

danny: Hahahaha! They call themselves Exmos!

[effie]

I came across a blog written by Catholic seminarians in Ireland dedicated to exposing the church's mishandling of sex abuse. Oh, the mighty internet!

[ah-pee-chorus]

i think this is part of the family's plan to make sure SMR has a minyan in prison.

[jancsibacsi]

theese holier then thou rebbes have to use their torah learned brains for something usefull so this is what they do best fabricating elaborate schemes in case they are caught they even show that its not their fault as his lawyer says just stupidity drove him so lets have pity on them and let them go and do it over and over what a joke

[ruthie]

balkany

is a thief
his kids are really nice.
and really really rich. but they all have their money hidden. it was given to them by their father. he hid so much other money. so much.

balkany is a CRIMINAL. HE IS WITHOUT A DOUBT ONE OF THE BIGGEST.
BUT HE HAS SOME KIND OF CONNECTIONS...? i really don't know...but i have known for years he is a criminal. scary. i know a lot because i am friends with one of his kids. and boy do they live the good life. i met one at a fancy fancy spa. we were there together for a week. really nice people. too bad their father is a criminal....huge one.

[ruthie]

how does someone like balkany get away with this over and over and over again?

how? block voting? or is simply another al capone? maybe smarter?

pardon, my earlier rant, just woke up! but balkany is a first rate criminal.
i would admire him for his criminal activities...kinda cool...but he's a rabbi.....so that hurts me. hurts my sensibilities.

[seymour]

The die has sbeen cast. This GANIFF belongs in jail along side SMR.
It seems these people have a genetic deficincy. They all become croks. Where did this so called Rabbi study? He is a disgrace to his people, Yeshiva, and mankind.
Is this what we have teaching our children in Yeshivas today. Where is the sense of palin old Torah study? The old time Ravs, who held their heads high, had moral compasses to do good and what was right.
We have generations of children who are lost at sea for the lack of leadership, quality Ravs, Sages and people with ETHICS.

Posted by: Barry | November 02, 2010 at 10:15 AM

barry these/other rebbies and yeshivas where doing fraud when i was a kid about 30 years ago.

Scandal after scandal all involved some of the so called holiest yeshivas, and maybe they got in trouble with the US law. But as far as the Orthodox community was concerned these people where still held in great and holy esteem. and given great koved after being released from prison.

But Barry, god forbid a kid got caught eating Carvel ice cream or going to a pg movie all hell broke loose and the action condemned severely.

what a nutty a and ethically challenged community

[aaron]

of course! no doubt about it .

how else can they live a life of luxury ?

they don't work . so, they rip people off,
( the rich,brainwashing them with bullshit)
or steal from them when they cannot get the tzedaka they want .

if you don't work and do not have an income . how can you afford living in a multimillion dollar mansion in a posh neighborhood ? have a massive SUV in the driveway , plus a luxury car ? have gourmet quality food galore in your refrigerator ? dress your 10 kids like
rock stars, buy your wife $ 400 wigs and up ! buy the top of the line computers,
hi tech cellphones, like it's 'normal' .
and travel thruout the year around the world with 10 kids with no good reason, but just to have fun ?

[Yochanan Lavie]

Some Beatle Torah:

How does it feel to be
One of the ripped off people?
Now that we know who you are
What do you want to be?
And have you been "taken" very far?
Far as Shmarya can see.
How does it feel to be
One of the ripped off people?
How often have you been laid bare?
Often enough to know.
How were you emotionally scarred?
Nothing that doesn't show.
Bubbie you're a rich man,
Bubbie you're a rich man,
Bubbie you're a rich old Jew.
You give all your money to Balkany inside a shul.
What a thing to do.
Bubbie you're a rich man,
Bubbie you're a rich man,
Bubbie you're a rich old Jew.
How does it feel to be
One of the ripped off people?
Done in by a felony
Crappy to be that way.
Now that they've found another mark
What are you going to say?
Bubbie you're a rich man,
Bubbie you're a rich man,
Bubbie you're a rich old Jew.
You give all your money to Balkany inside a shul.
What a thing to do.
Bubbie, you're a rich man...

[Gevalt!]

You all need to understand, that on top of his base salary, he probably also gets a 15-20% commission on all donations that he brings in. Since his association with large name schools is obvious, that means that a large percentage of all money that was donated was given to him as a commisioned paycheck - which he didnt have to pay taxes since he filed w parsonage exemptions - hence his large piggy bank.

this is a common practice by most yeshivas which big donors do not realize...they give 100k to a new building, or room, etc or some other program - and 15-20% off the top is paid back to the person who solicited the $.

savy?

[ruthie]

hey gevalt...

if only THAT'S WHERE BALKANY WAS GETTING HIS MONEY! sure, it's bothersome...but if only if only IF ONLY that's ONLY were he was getting his money.
let's talk estate lawyers, private deals in his office, neighbors, merchants, yeshivas, geez i bet he even made deals with people he met vacations he took....countless other ways he made money....COUNTLESS.....

[ruthie]

balkany probably owns some pretty good art too. he's not stupid.

[Monsey Hocker]

Balkany would pimp his own mother if it meant pocketing the ducats. And charge an extra deuce for anal.

[Dovy]

Between Balkany and the Rubashkin clan, there's some baaaaad seed going on.

[Monsey Hocker]

With SMR enjoying life at tax payer expense for the foreseeable ever, I wonder if he now acknowledges that Milty is the more creative shyster. One can only imagine the table talk at family get-togethers. Like, stop talking about rubbing up against some kid in the mikva, your shver needs to discuss bank fraud and extortion with Uncle Milty.

[chaya]

balkany should be investigated and thrown in jail like his bro in law sholom rubashkin .

if someone know where he lives . go ahead , and report him to the IRS and the FBI. it will be a pleasure for them to lock him up .

he is so ugly . how can his wife sleep with him ? she must see the big bucks and close her eyes during sex . that'a a prostitute ! yeah . what else can it be ?

[ava]

ruthie,

keep us updated with all you know about the balkany family .
we want to know more .
if you know more ,post it .

[the farshlepte krenk]

dont worry, Milton has a lot of points, redeemable in gan eden, for all the tzitzis he wears

[Solomon Dwek]

why no trial updates?

[chaim36]

Please try to update on this story about MILTON.

[mushka]

lock him up, after trial . just like his brother in law ,for 30 years!

how old is the crook ? 60 years old .
so, if he gets 30 years , ( bezrat hashem ), he will get out [ if he makes it ] of jail 90 years old .

not bad !

[raffi]

when is the trial? not a date, yet?
they better speed it up with their investigation, their case build up....and all the stuff .....and start the damn trial .

i wanna see him locked up .