Balkany diverted the funds to an array of individuals and entities who were not entitled to the earmarked funds. He diverted $300,000 to an Israeli corporation in which his son-in-law was an officer, and another $5,000 to a New York import company run by another son-in-law. He also diverted approximately $80,000 to a variety of other rabbis and Jewish schools and organizations located in Brooklyn. He also wrote out 32 checks against the Bais Yaakov account, totaling approximately $78,000, all made payable to "Rabbi Balkany" which were subsequently endorsed and either cashed or deposited into a personal account at another bank. 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.