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February 17, 2011

Government Asks Judge To Sentence Rabbi Milton Yehoshua Balkany To 9 Years In Prison

Rabbi Milton Yehoshua Balkany Balkany, 64, was found guilty in November of criminal counts – extortion, blackmail, making false statements and wire fraud – after a seven-day trial in federal court in New York. He is scheduled to be sentenced tomorrow.

 

U.S. to judge: Throw the book at blackmailing rabbi
Prosecutors say Balkany deserves maximum prison sentence for extorting SAC hedge fund
Investment News

Rabbi Milton Yehoshua Balkany Milton Balkany, the Brooklyn, New York, rabbi convicted of trying to extort $4 million from Steven Cohen's SAC Capital Advisors LP, deserves as long as nine years in prison, U.S. prosecutors said.

Balkany, 64, was found guilty in November of all four criminal counts of extortion, blackmail, making false statements and wire fraud after a seven-day trial in federal court in New York. His lawyer, Alan Kaufman, has asked U.S. District Judge Denise Cote in Manhattan to impose a ”lenient” term when he is sentenced Feb. 18. Kaufman didn't specify a term length.

The rabbi, who was also dean of the Bais Yaakov day school in the Borough Park neighborhood of Brooklyn, told the Connecticut-based hedge fund that he was the spiritual adviser to a federal prisoner in Otisville, New York, who could implicate the fund in wrongdoing, prosecutors said. He then called prosecutors in an attempt to put pressure upon SAC Capital to further his scheme, the U.S. said.

“The defendant sought to use the U.S. Attorney's Office to increase pressure on the hedge fund and make his threats more credible, all so that SAC would pay him the millions he was demanding,” Assistant U.S. Attorneys Marc Berger and Jesse Furman said in today court papers.

Prosecutors said sentencing guidelines call for as long as 108 months in prison and they urged the judge to sentence Balkany to a “substantially greater” term than the 24-month period recommended by U.S. probation officials.

Kaufman said in court papers that Balkany deserves a lesser term, citing his client's “lifetime of good deeds” and community service. The defense lawyer also said Balkany has 13 children, including a daughter who is handicapped, and that the family would suffer a hardship if he's incarcerated.

Witnesses testified at trial that Balkany told a lawyer for the hedge fund that the inmate would keep quiet about alleged illegal trading by the fund in 2004 and 2005 if SAC Capital paid his school and another school $2 million each.

The lawyer instead recorded his phone calls and meetings with Balkany.

Balkany was arrested last February after taking two checks from SAC totaling $3.25 million. Balkany told an SAC official at the time that the inmate wouldn't talk to federal authorities at a meeting scheduled the following day. No such meeting was actually planned, according to the government.

Comments

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he always knew he would be caught. he loved taking the chances he took. and boy did he take big ones.

How old are his children?

all adults...i think.
i was on vacation with one of his daughters. she's very nice.

I actually read the government's brief and it does not say what the article says it does.

The government says that the sentence should be 84 - 108 months under applicable sentencing guidelines. But the government also says that the Court can justifiably accept a downward departure because of the defendant's good works. However, the government says that 24 months - the probation department recommendation - is too lenient.

In short, they are not trying to throw the book at Balkany, much as he deserves it. They are simply saying that he committed a serious crime and tried to involve the very U.S. Attorney's office that gave him a break in his criminal scheme. Pretty moderate brief, if you ask me.

i can just picture the smile on his face and pep in his step as he walked away with the checks , thinking he had gotten away with his blackmail.

Why not 27 years, so he can join you-know-who?

He went to the ohel this morning my prediction is that he will get probation and a stern warning from the judge

IF THEY JUST GIVE HIM PROBATION THERE WILL BE A LOT OF ANGRY PEOPLE, YOU WILL KNOW THE SYSTEM IS CORRUPT IF HE GETS OFF SCOTT FREE. BUT THEN AGAIN WHY WOULD THEY MAKE HIM WEAR AN ANKLE BRACLET AND BE UNDER HOUSE ARREST IF HE WASN'T SERVING ANY TIME. AND YES, I TOO LAUGH AT THE THOUGHT OF HIM EVEN SPREADING HIS CHEAKS, REM THIS IS THE GUY THAT WEARS PAJAMAS EVERY NIGHT!!

13 children?!?! WTF?

you know....i think the guy is a fucking idiot.
not because of what he did.
because i'm jewish and i need a rabbi to be a real rabbi.
all i see is bullshit.
i don't know one real rabbi :(

One thing is certain: Miltie will sit. Remember, the jury came back in four hours. He declined a plea, forcing a trial (which is, of course his right). No way he does not get a considerable sentence- it's just not possible.

The fact that Benny Brafman couldn't get his client to accept a plea was a serious mistake.

Ruthie: A know a handful of real rabbis, and they are far from being rich. My shul can only afford to pay our dynamic rabbi bupkis, but he stays because he feels it's his mission to be there (he is not Chabad, but MO). I know he is an exception.

thanks yochanan....i'm sure there are many....i don't care if they're modern orthodox or frum....just real.
i would be happy if they were rich...that's not the problem...it's balkany, tendler, and all the other idiots...or the rabbis that come to me always for money...never once and "how are you?"
not people at the door....rabbis of shuls.
i'm supposed to help a woman who had her 10th kid , they want me to pay for her cleaning lady help.
who the fuck told her to have 10 kids.
i'm sorry....i want to move to italy on the coast....just away...and have some friends......that aren't thinking of shidduchim and g-d knows what all the time...what about education...what about not
talking loshen hora...oh fuck it....but thank you yochanan....i hear fair lawn nj has a great rabbi. oh, at this point, i can't trust again. they took that away...i'm clinging to just remaining jewish.

Good. He can be a cellmate of Stevie Cohen, who's going down with Balkany. It's only a question of time before Steverino hits the Slammerino.

Bright spot: The two of them can trade stock tips. Not that they'll have the money to buy much; making license plates is a sub-minimum-wage job.

ruthie- you expressed youreself very well i myself like you am clinging to just ramaining jewish after all i have experienced in life with teese holier then thou putzes

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