Rabbi tries to shake down hedge fund

Rabbi Milton Balkany has been charged by U.S. authorities with trying to blackmail hedge fund (hedge fund news) SAC Capital Advisors. Balkany allegedly told the fund that unless he was paid $4 million he would advise "a person in prison who allegedly knew about the insider trading (insider trading news) to tell the U.S. government about it," according to Reuters.

Balkany says he had information on illegal insider trading in six securities. He was charged with extortion, blackmail and wire fraud. This was an incredibly amateurish attempt. It's hard to believe that anyone thinks they can get away with stuff like this. It strikes me as a desperation move. In any case, he might end up prison. Balkany after all, had been charged in another case for which he got a deferred prosecution agreement. SAC is the wrong fund to try to blackmail, after its Biovail experience, it's accustomed to playing hardball. 

For more:
- here's the article

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