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Rabbi Balkany Sentenced to 4 Years in Prison

Bloomberg News

Milton Balkany, a Brooklyn rabbi, was sentenced to four years in prison for trying to extort $4 million from Steven Cohen’s SAC Capital Advisors LP.

U.S. District Judge Denise Cote sentenced Balkany today in Manhattan. Balkany, 64, was convicted by a federal jury in November of extortion, blackmail and other charges. His defense attorney, Alan Kaufman, had asked for leniency.

“Just because you lead a charitable institution doesn’t give you a pass to commit extortion and fraud,” Cote told Balkany in court.

At the trial, prosecutors said the rabbi, who was dean of the Bais Yaakov day school in the Borough Park neighborhood of Brooklyn, told the Stamford, 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. Balkany then called prosecutors in an attempt to put pressure upon SAC to further his scheme.

Kaufman said in court papers that Balkany deserves leniency because of a “lifetime of good deeds” and community service. Balkany has 13 children, including a handicapped daughter, and his family would suffer hardship if he were incarcerated, Kaufman said.

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

The lawyer instead recorded his phone calls and meetings with Balkany, who 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 for the following day. No such meeting was planned, according to the government.

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36 Comments

  • Ad MOsai

    Oy vei!
    when is all this tzaros going to end?
    Their family doesnt need anymore of this.
    WE NEED MOSHIACH NOW!!

  • chaim

    nice pic with zalman vishedsky i guess we cant always win no matter how much money we have. i hope he can appeal this as he is a good man and we need him on the streets

  • DF

    Dear Number 2 – As much as I hate these stories and wish no one have to suffer like this. You can’t say this wasn’t coming his way.

    When will people learn to follow the law and do the right thing and stop trying to scam and bend rules!?!

    The “Ad Mosai” line should be used for things which are out of our control. Like when people pass away at a young age etc.

    This is in people’s control. Do the right thing. Especially when you are frum Jew with a hat and beard – you have to be careful – this is a horrible Chillul Hashem,

    How sad is it to have a lawyer stand up and say “well sure he blackmailed someone but your honor he had a lifetime of good deeds”!?!

    Who cares about your good deeds if you treat people like your personal bank account?

    What are your “good deeds” worth if you use other people’s money to do them?

    Enough of this! Rabbi’s and frum business people – Watch yourselves and how you act.

    To be honest, I really feel bad for his family but I do not feel bad for him. Yes I am a frum Jew and I care about others and I have “rachmuness” – thats why I care about the family.

    But when I have to see a Rabbi’s face in the paper with headlines like “Scamming Rabbi” etc. its not very nice to me. It’s not fair to drag everyone down. He deserves a punishment. As for the family they are an innocent victim – something he should have taken into consideration before he did what he did.

    And don’t dare start with the “you don’t know all the facts”, “I know Rabbi____ – He is a great man”, “He is totally innocent – the ____ set him up”. Cut it out!

    It’s not possible that every frum person in prison was set up. The government is not bored looking to lock up frum Jews.

    The man has spoken.

  • to # 5

    to # 5, and you think you are so innocent? have you ever “past” on jury duty? well that is a crime, do you always pay your taxes on time? did you ever park by a pump? you are a miserable person having to go out of your way to comment badly about another person let alone one of your own!

  • DF

    Dear #6

    No – I went to jury. No – I don’t park by pumps. Yes – I always pay my taxes on time. I am miserable? No I live in USA and I am proud to be a member of this great Country. The Rebbe called this country a “Midnas Shel Chesed”

    The laws are made for the benefit of all those around you. Don’t be selfish and use others.

    And there is a difference between not paying your taxes on time and trying to rob someone of their money – and I’m sure you are very much aware of that?

    Do you always defend crooks?

    I am very sad to see “frum” Jews going to prison. I am just not sure as to how a person can be called “frum” and be a thief? How in the world is that possible? And a Rabbi too? Now I know you wouldn’t use him as a Rabbi but the newspaper is sure glad to use him as a Rabbi… Headlines about Rabbis stealing help sell papers.

    I am just sick and tired of “frum” people trying to mess with the law.

    Then they want me to defend their actions? I am sorry for the family. And I don’t want this man to suffer anymore then he needs to. He should not get anymore then is just.

    One of the seven noahhide laws is to set up courts of justice.

    In the case of SMR he got way more than the crime he committed deserves.

    But how many times do you need to see guys with beards and hats being taking to prison before you realize we have a problem.

    We seem to focus a lot on Mitzvas bain adom l’mokom but don’t care about bain adom l’chvario.

    That is very sad. Someone caring more about how his Esrog looks and whether or not he said Yalae V’yovo instead of caring about his fellow man is doing.

    No wonder the young people would rather listen to lady gaga and sip latte all day. You don’t give them much in place of that.

    The man has spoken – again.

  • DF

    Dear #6 – just to make it clear – it is precisely because it is “own of my own” that it bothers me so much.

    I don’t know about you but I expect better from my own. Especially when they walk around looking all frum and calling themselves “Rabbis”

    I was also pained to read comments on other sites where people were getting a kick out of someone else’s misfortune. It is very sad indeed. But after quite a few cases its time people wake up and learn how to behave.

    I get no joy out of this story. I remember the first time I saw this sort of story – my heart sank. I do not enjoy this. Should you feel bad? Yes. Should you say everything is OK and that the press and the government is just out to ruin a innocent person’s life? Well, thats just foolish.

  • to #6

    Do you mean “passed” on jury duty?

    I do not know the facts of the case, but based on the description in the story, I am not sure how you can compare the “offenses” you list and what Rabbi Balkany was found guilty of. Specifically, the story says, “Balkany then called prosecutors in an attempt to put pressure upon SAC to further his scheme.” Isn’t that mesira? Forget the relative significance in secular law of not paying taxes on time (not necessarily a crime even if it may subject the taxpayer to penalties) vs. extortion, don’t you think Toarh makes a distinction between someone who is a moiser and someone who may be guilty of parking violations and sending in their taxes late, dina d’malchusa dina notwithstanding?

  • s.j.

    The family should appeal. There are two Adars this year-so why didn’t this court case go in his favor? We have to increase in simcha to annul this and all negative decrees.
    #5. Don’t be satisfied when a fellow Jew gets sentenced. Whatever we judge for others, Hashem judges for us.

  • DF

    Dear #12 SJ:

    Please have your noodles examined. I am not satisfied with a frum person sitting in prison. I am also not satisfied with people who call themselves Rabbis acting like crooks.

    Increase in Simcah? Ha ha ha – Your comedy is doing a good job at that. How about increasing in sensitivity to others and not rolling people over for your selfish needs?

    “negative decrees”!?! Who put him in the situation he is in? He made some foolish moves so he ended up where he did. I am sorry for his family. Evil decrees is when something negative happens out of your control – this was in his control. I know I don’t go calling people trying to rob them of their money,

    I hope I don’t sound like those people who were enjoying the fact that SMR is sitting in prison for 27 (!?!) years. I am not smiling. I am not happy.

    We need to do a better job. Treat others as you want to be treated – that is the entire Torah!

    I am sad to see people can’t accept what I am saying. It should be simple to understand.

  • Jack

    To #5,

    Agreed. It amazes me how blind people are to the fact that Balkany threatened to masser on a fellow Jew. Forget about the fact that he used threats to steal money that wasn’t owed him (the evidence against him is abundantly clear), mesirah is one of the worst crimes in halacha and we are told to let mosrim die. But when the villain is Chareidi and influential, apparently halacha doesn’t matter… Undoubtedly, none of the above commenters consulted rabbonim before pronouncing injustice. This sad double standard is what allows crime to continue in our communities.

  • To everyone

    I agree with #12, Balkany might have been wrong in what he did but still no matter what we should always stand by each other, and not be of the people who say he should have bad upon him.If we say good about him, then hashem will im”y do good too, and not just for him but for us all and bring moshiach!!!!!

  • pained to see the negetivity & yes happy

    I am pained to see the negativity and yes the way some people thrive on other’s tszoros.
    it is not good to see a yid in jail. we are not the one to judge is it coming to him. we have to feel bad and do everything we can to help and Hashem will help us even if we do or don’t deserve it. should we give food to someone who does not know how to manage his finances? he uses his money to buy “stuff” and does not have enough for food for the family or a chasuna. should we just let him fall or give him food and give money to pay for the chasuna. we are not going to play g-d. let g-d judge and let him judge us favorably even if we do wrong.

  • explain

    just wondering why rubashkin gets 27 yrs and what ever they say he did, if he did it it was a mistake.

    and bolkony gets only 4 yrs for doing this purposely????????????????

  • SA

    To DF . . . You are entirely correct in your feelings and outlook. When will people learn that their poor choices seriously affect their family and the community around them.

  • Malka

    oy vey! I can’t take this. Wonderfull people suffering more, and D.F do a favor to everyone and keep your comments to yourself, you’re not teaching anyone anything here.

  • To all those commenting to #5

    You do of course realize that this story, and stories of all scamming Jews, Rabbi or non-Rabbi, affect EVERY ONE of us. That’s right, YOU TOO.

    When people see YOU walk down the street with your Jewish face, beard or not, people wonder if you too are a crook.And you may not even realize it but the hatred builds over time, and can ultimately cause a lot of harm. Jews engaging in scams make it bad for Jews all over the country, all over the world. So it is fair to say that what he did was very, very inconsiderate of all of klal yisroel, even though he has helped many, many people over the years. It is foolish for people to think they won’t get caught and totally clueless not to realize how many people will be harmed in the process.

  • CT

    stop the horrible comments!!
    R Balkany is a respectable man of only kindness,
    and all this he was doing, was for certain not for his own benefitting/ himself… he was doing this to help other people… instead of looking at the neg, look how he went out of his own self, and beyond the law, just to help other yidden.

  • A N Other

    It is high time that residents of CH realized that extortion, embezzlement, and generally breaking the law of the land is illegal.

    It is also high time that residents of CH also realized that any Jew who is convicted of a crime should and must pay the penalty for doing so.

  • Ash

    I have no say in shortcomings with the law, but he did not strike a man, nor curse a man, he must have been a HUGE chochom, and what they make him to be is not what he is. We must have Moshiach now, and everyone please Daven with all our hearts for him and Rubashkin, our beloved brothers undergoing Tzarros we are very fortunate to not be living in.

  • DF

    My final comment:

    It’s obvious that you are not understanding my point. Read my above comments and you will see that I addressed everything you are bringing up.

    In summary:

    1. They have audio of the calls he made. It is beyond clear that whatever he did was not 100% Kosher. That is a fact.

    2. He is a Rabbi? This is a frum person? How can you be frum and steal – Im lost?

    3. You want to put this man up on a pedestal? Is this “Rabbi” someone you want your kids looking up to? Do me a favor.

    4. He messed up. With intention. You don’t make a phone call by mistake.

    5. He is paying for what he did. He acted foolish.

    6. In general it seems that these frum people who get caught in their own shtick have a very hard time admitting to what they did and saying they are sorry. A sad fact that makes it harder for them to get a lighter sentence. In general I think money crimes should get a money fine or penalty and not prison time.

    7. Is being Robbin Hood OK according to Halacha?

    8. Is is sad a Jew has to go to prison. You bet. Am I getting a kick out of this? No way. It hurts. It’s a Chillul Hashem. I feel bad for his family. I feel bad for every Jew that has to deal with the fact that these sorts of stories don’t help the “money hungry” Jewish stereotype.

    9. Stop calling him a “respectable man” etc. It’s nauseating. Maybe he once was a great guy. But he slipped and until he admits it and says sorry, I can’t feel so bad. Learn the laws of Teshuvah. One of the reasons frum people don’t admit is because they want your money to help him out… If someone one came to me and said: “So and so made a horrible mistake and can’t sleep because he feels so bad. He can’t look himself in the mirror. He can’t face his family. It is eating him. He feels so bad. He wants to fix whatever wrongs he did…” – I would be very happy to reach out and help. But when they come with “Tzadik Ba L’air.” A great and holy and pious and kind and caring person needs your help because he was set up… – It feels like the cheating and lying is just continuing.

    10. (To #16): Stop telling me not to judge. G-d almighty in his infinite wisdom told all of mankind in the seven noahide laws to create courts of justice, law and order. Man can look and judge – otherwise G-d would say “free for all – Do what you want! – Only I know the truth – so just wait until you come up after 120…” He did not say that.

    You can ask for Moshiach now etc. but stop making it like G-d is throwing us around and asking him to make things all nice. People have free choice. This man made the wrong move. G-d can bring peace and redemption but we have to behave ourselves.

    If I met this “Rabbi” or if I was in the court room when the sentence was given I am sure my heart would go out to him and I might even begin to cry. It’s sad. I would say “I am sorry for you. I am sorry your family has to suffer. I hope you can win on appeal and get a lower sentence. But please reach out to all the papers and tell them how sorry you are etc. beg for forgiveness and tell them how you will step down from any position you might still have.

    How come in the secular world when a politician is busted for something bad – often involving family members etc. He gets up and accepts and admits the things he did. Asks for forgiveness and says he is sorry for letting down his family, those who elected him etc.

    We can learn. Admit. Apologies. And when your done keep as low profile as possible.

    I am sorry if I am sounding like a nasty person. I am not. I am an honest good and caring person. If you pick up on any negatively its because of the fact that I am sick of these sorts of stories. It has gotten out of hand.

    I am done. If I am wrong. Let a real Rabbi tell me how that is and may I be forgiven by the one who truly knows all.

    PS: If it makes it easier for you too digest take this person out of the points made. I am judging the situation as a whole. And it is very very sad. I want Rabbis to be Rabbis and frum people to be frum people. Having to explain away each case won’t cut it. It just stinks too much already.

    Moshiach NOW!

  • sad but fair

    he was guilty, he was wrong. it’s sad, i know, but if it had been a non-jew, who “did good deeds in his life”, would you be so mad?
    NO.
    whats more to say?

  • Think Positive

    TO #17 and #19

    Why should you assume that Rubashkin will get 27 years. Let us hope that he will be out way before the 4 years that R’ Balkany was sentenced to!!

  • anonymous

    to dff: keep your horible commments to yourself i cant wait for the day that df PICTURE PERFECT man has a tzara like this and will be over here on ch.info i will make sure to comment
    and to all taht wrote horrible comments kepp them to your self
    because i am his relative

  • Shushan purim

    Eabbi Balkany is a good man who helped many,many people.
    The prisons are full of innocent people. Indictment and conviction do not necessarily imply actual guilt. As the noted saying goes – a grand jury could indict a ham ( excuse the treif analogy) sandwich. If the government,or its’ officials decide to go after you, you are cooked.