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.

[4] He became widely known for giving public religious benedictions (Brachot) to senior politicians at city council, state legislature, and Congress, where he served as guest chaplain in June 2003, opening the U.S. Senate and the U.S. House of Representatives with the prayer "I stand here today among the jewels of our nation, men and women who are precious, who radiate dedication, and they have been selected as the leaders of our land.

"[5] 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.

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.

After he arranged a brief prison release for Helmsley so that she could visit family members' graves before Yom Kippur, the billionaire made a contribution to Balkany's school.

[8] 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.

"[7] In March 1995, a Rabbinic Court met at Yeshiva University at Rabbi Ahron Soloveichik's suggestion to hear Balkany's charges against Luchins.

[11] 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.

[5][13] 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.

In connection with the investigation, auditors allegedly learned that the "Children's Center" had failed to file any of the regular progress reports required under rules and procedures of the grant.

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.

[14] He also used thousands of dollars in grant funds to pay for personal items such as life insurance premiums; credit card bills and income taxes.

[14] Balkany was charged in the Complaint with theft of government property, filing a false claim, wire fraud and obstruction of justice and released on a bond of $750,000.

[14] In a deal with prosecutors in 2004, Balkany agreed to restrictions on his movement, six months probation, full restitution of the monies and admitted that he was wrong in not complying with specific terms of the grant's use.