NEW YORK, Feb. 19 (UPI) -- A New York rabbi has been accused of trying to trick managers of a Connecticut hedge fund into giving $4 million to two schools he works with, prosecutors say.

Rabbi Milton Balkany, 63, of Brooklyn, faces federal charges of extortion, blackmail and making false statements in connection with an elaborate shakedown scheme, the New York Daily News reported Friday.

Prosecutors say Balkany told the hedge fund managers a young man in prison was threatening to reveal information to federal investigators about illegal trades made by the firm.

In exchange for the man's silence, Balkany sought donations totaling $4 million for two schools he worked with.

"Seven or eight years ago I was accused of wrongdoing and the government had to back off then," Balkany said Thursday as he left federal court in Manhattan. "This is much more ridiculous."

Balkany is known as the "Brooklyn Bundler" for his skill at fundraising