Rubin/Chambers, Dunhill Insurance Services, Bid-Rigging and Fraud Conspiracies, New York 2012

A Beverly Hills, Calif.-based financial products and services firm, Rubin/Chambers, Dunhill Insurance Services, also known as CDR Financial Products, and its founder and owner, David Rubin, pleaded guilty today in the Southern District of New York for their participation in bid-rigging and fraud conspiracies related to contracts for the investment of municipal bond proceeds and other related municipal finance contracts, the U.S. Attorney's Office announced.

Rubin/Chambers, Dunhill Insurance Services, and David Rubin, pleaded guilty before U.S. District Judge Victor Marrero in the Southern District of New York. Rubin and CDR, along with Zevi Wolmark, also known as Stewart Wolmark, the former chief financial officer and managing director of CDR, and Evan Andrew Zarefsky, a vice president of CDR, were indicted on Oct. 29, 2009.

Rubin and CDR each pleaded guilty to participating in separate bid-rigging and fraud conspiracies with various financial institutions and insurance companies and their representatives. These institutions and companies, or “providers,” offered a type of contract, known as an investment agreement, to state, county and local governments and agencies throughout the United States.

Rubin and CDR also pleaded guilty to one count of wire fraud in connection with those schemes. “Mr. Rubin and his company engaged in fraudulent and anticompetitive conduct that harmed municipalities and other public entities,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Antitrust Division.

According to court documents, CDR was hired by public entities that issue municipal bonds to act as their broker and conduct what was supposed to be a competitive bidding process for contracts for the investment of municipal bond proceeds. During his plea hearing, Rubin admitted that, from 1998 until 2006, he and other co-conspirators supplied information to providers to help them win bids, solicited intentionally losing bids, and signed certifications that contained false statements regarding whether the bidding process for certain investment agreements complied with relevant Treasury Regulations.

“Mr. Rubin and his firm were trusted with public money and confidence to assist municipalities with issuing bonds,” said FBI Assistant Director in Charge Janice K. Fedarcyk. “Contrary to his agreement and the law, Mr. Rubin shirked his responsibilities while defrauding taxpayers. Thankfully, this bid-rigging scheme, where Mr. Rubin decided the winners and losers, is over.”

Defendant: Rubin/Chambers, Dunhill Insurance Services (also known as CDR Financial Products) and David Rubin

Criminal charges: Bid-rigging and fraud conspiracies related to municipal bond investments

City and state: Beverly Hills, California (operating in New York)

Date: January 2012 (guilty plea)

Sentence: Not specified in the article

Amount: Not specified in the article

Source: https://www.justice.gov/archives/opa/pr/cdr-financial-products-and-its-owner-plead-guilty-bid-rigging-and-fraud-conspiracies-related