Milton Balkany

Milton Yehoshua Balkany (born 1946) is an American Orthodox Jewish, past director of the Jewish girls′ school Bais Yaakov of Midwood, conservative political activist and fundraiser from Brooklyn, New York, dubbed "the Brooklyn Bundler."

Family Balkany is married to Sarah Rubashkin with whom he has 13 children. They live in Borough Park, Brooklyn. His father-in-law was Aaron Rubashkin, a Lubavitcher hasidic Brooklyn butcher and the founder of the now bankrupt slaughterhouse and meat-packaging factory Agriprocessors based in Postville, Iowa.

Activities In September 1960, Balkany founded Bais Yaakov of Brooklyn, now Bais Yaakov of Midwood, a strictly orthodox girls′ school in Borough Park, and served as its dean. A conservative Republican, Dubbed "the Brooklyn Bundler," he had a reputation as someone who had access not only to elected officials but to several government agencies as well.

Controversies

Yeshiva Rav Isacshon In 1987 Balkany became embroiled in a scandal after soliciting politicians to approve a $1.8 million grant from the Department of Health and Human Services to Yeshiva Rav Isacshon to acquire a building in Los Angeles. Department officials later asked for the return of the money to the government.

Prison lobbying Balkany has also lobbied the U.S. Bureau of Prisons to improve conditions for Orthodox Jewish prisoners. According to the Village Voice, several people who have dealt with him say that he has claimed the power to arrange favorable treatment in prison for individuals such as Leona Helmsley and Eddie Antar.

David Luchins In 1994, Balkany tried to have David Luchins, an Orthodox Jew, official of the Orthodox Union, self-described liberal, and then aide to Senator Daniel Moynihan excommunicated by a Jewish religious court, blaming him for having "caused yeshivas in the land of Israel to lose money." Moynihan refused to allow Luchins to attend the hearing. Balkany told the press that "We have grave concern with a lot of things he is doing in the Jewish community under the auspices of being a senior staff member of Sen. Moynihan's, whenever an issue comes to his attention, he gets involved and does great harm. He's hurting individuals and hurting communities, he thinks he has a direct link to Sinai. I haven't accepted his word as God's word yet." Luchins responded that "Jewish tradition says that every Jewish soul was at Sinai, and I assume Rabbi Balkany's was there also. We may not have met because he might have been in the back, collecting money." The request was in relation to funding to set up computer training programs in Russia, run by the Yeshiva Ohr Torah of Rabbi Shlomo Riskin, a controversial rabbi in the Israeli occupied West Bank. Despite the fast-tracking of the payment following an AID meeting with Dole, both Dole and AID denied that there was any excessive influence exacted on the organisation by the then Senate Majority Leader on Balkany's behalf. Riskin argued that he had never asked Balkany to intercede with Dole on his behalf and refused to attend the hearings.

Daycare vouchers Balkany became a key figure in the distribution of day-care vouchers in New York due to his close ties with Rudy Giuliani and top-aide Bruce Teitelbaum. According to reports in the Daily News, Balkany helped corral for Orthodox Jewish schools more than half the city's total allocation of vouchers. Balkany offered a full-service operation, charging families a fee to fill out applications for the vouchers, which were in desperate demand all over the city. Nicholas Scoppetta, at the time serving as commissioner for children's services, was sufficiently disturbed by events to refer the matter to the city's Department of Investigation, which opened a probe that was later joined by federal investigators.

Criminal charges and trials

Misappropriation of charitable funds On August 26, 2003, the US Attorney for the Southern District of New York, announced that Balkany had been detained on charges that he misappropriated approximately $700,000 in federal grant money.

Balkany as the President and Director of Bais Yaakov, a Jewish day school in Brooklyn, applied for, in November 1999, and later received a $700,000 Congressional "Economic Development Initiative" grant administered through the auspices of the United States Department of Housing and Urban Development. According to the Complaint, he said that the entire grant amount would be used to pay off a mortgage on a building located on the Bais Yaakov property for an entity called "the Children's Center of Brooklyn" to house educational and therapeutic programs for disabled preschool children.

Subsequently, investigators obtained records for the Bais Yaakov account at Chase Manhattan Bank into which the grant money had been deposited. Those records reflected that all of the money received from HUD in December 1999 had been withdrawn from the account by early February 2000, a two-month period in which Balkany wrote more than 250 checks drawn against the account. According to the Complaint, further investigation revealed that only one check, for approximately $6000, was used to pay down any of the pending mortgages against the Bais Yaakov property, which at the time of the grant totaled more than $1 million.

Hedge fund extortion On February 18, 2010, Balkany was arrested and charged with extortion, blackmail, wire fraud and making false statements in a Federal Court in Manhattan. The hedge fund involved was SAC Capital. Balkany received two checks totalling $3.25 million and was arrested shortly after. The complaint filed reported that he claimed that he could prevent a federal prisoner from telling U.S. authorities about alleged insider trading at the firm. According to court records, Balkany told an investigator with U.S. Attorney Preet Bharara′s Manhattan office in a conversation recorded by prosecutors, that SAC had inside tips about two companies which make medical devices and a company which makes molecular diagnostic products. SAC, which has since been riddled with insider trading convictions, had a SAC lawyer alert prosecutors to the extortion attempt, and a prosecutor said during the trial that Balkany "lied" and that there was no evidence of illegal trades. This was later proven untrue. SAC was involved in multi insider trading convictions and investigations. In February 2011, two former employees were charged with insider trading.

Balkany's assertions were further proven correct when in November 2012 federal prosecutors levied charges against additional former SAC Capital traders. Portfolio manager Michael Steinberg was arrested in March 2013 and accused of using inside information to make $1.4 million in profits for SAC Capital. In June 2013 nine former SAC employees were charged with conspiracy and securities fraud. With the conviction of Mathew Martoma on February 6, 2014 after a speedy four week trial, a total of eight former SAC Capital employees have been found guilty.

Despite these future disclosers which would support Rabbi Balkany, on November 10, 2010, Balkany was found guilty of all charges. On February 18, 2011 he was sentenced to four years in prison. In March 2012 Balkany appealed his conviction, claiming that he should be allowed to present an entrapment defense. The appeal was rejected and the original conviction upheld by the U.S. Second Circuit Court of Appeals.

He was partially released on Wednesday 9/4/13.