WASHINGTON (AP) — A politically connected financial firm and its founder have pleaded guilty to taking part in fraud and bid-rigging conspiracies related to the municipal bond business.
The Justice Department said CDR Financial Products Inc. of Beverly Hills, Calif., and owner David Rubin entered guilty pleas Friday in federal court in Manhattan. The department said they acknowledged their roles in schemes designed to win contracts to invest the proceeds of municipal bonds issued by state, county and local governments.
Rubin faces up to 20 years in prison.
Two other CDR executives are scheduled to go on trial in New York next week.
CDR also was investigated for its ties to former New Mexico Gov. Bill Richardson and business the company won in that state. No charges grew out of that investigation.