Rabbi Convicted of Wire Fraud and Blackmail

The Wall Street Journal reports that Rabbi Louis Balkany, dean of Bais Yaakov, a religious day school in Borough Park, New York, was convicted yesterday in federal court in Manhattan on charges of wire fraud, extortion, blackmail and making false statements.  The indictment (full text) charges that Balkany "was engaged in a scheme to extort a Connecticut-based hedge fund ... into paying millions of dollars to Balkany's school and to another school on behalf of Balkany." As summarized by the Wall Street Journal:

Balkany, who offer spiritual advice to prisoners, approached SAC Capital starting late last year with an offer: He would instruct an inmate not to squeal to the government about alleged insider trading at SAC Capital if the hedge fund made a $2 million donation to his religious school, plus a $2 million loan to another school.