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---
tags:
- Person
- ReligiousLeader
- Finance
- Israel
---
[[Menachem Schneerson]], also known as the Lubavitcher Rebbe, was a prominent orthodox Jewish leader based in Brooklyn, [[New York]]. His financial institutions were enlisted by the [[Likud Party]]-controlled [[Iran-Israel Joint Committee]] to funnel money for housing projects in the [[West Bank]] and [[Gaza Strip]] for Jewish settlers, drawing from the slush fund generated by arms sales to [[Iran]].[^1]
Large amounts of money were funneled through his institutions to [[Drexel Burnham]], a brokerage house where [[Michael Milken]] built his junk-bond fortune. Until 1987, some of the profits from the slush fund were used to finance the Lubavitcher yeshivahs (colleges).[^1]
In 1987, the committee and Schneerson parted ways. This was partly due to questions regarding his allegiance to the [[Likud Party]] and the emergence of the orthodox [[Shas Party]], which was at odds with the Rebbe. Funds previously directed to the Lubavitcher yeshivahs were redirected to the Shas yeshivahs. The committee also decided to withdraw funds from Drexel and from Schneerson's control due to concerns that the funds might be frozen if relations between [[Israel]] and the [[USA|U.S.]] deteriorated, contributing to Drexel's eventual downfall.[^1]
### Footnotes
[^1]: Ben-Menashe, Ari. *Profits of War: Inside the Secret U.S.-Israeli Arms Network*. TrineDay, 1992. (Hereafter, "Profits of War")