CDR Financial Products Inc. founder David Rubin was spared prison for his role in a municipal bond bid-rigging scheme that involved employees of some of the world’s biggest financial institutions, Bloomberg reported yesterday. Rubin was sentenced to two years’ probation and 500 hours of community service today by U.S. District Judge Kimba Wood in Manhattan. The judge also ordered Rubin and CDR to pay $3.5 million in fines. Since CDR is defunct, Rubin must guarantee his former firm’s $2 million share. Rubin, who must also pay as much as $2.1 million in restitution, pleaded guilty on behalf of himself and his Beverly Hills, Calif.-based firm in 2011, admitting that he took kickbacks for running sham auctions for investments. He was charged in a federal probe of bid and auction rigging in the municipal bond market. The case is U.S. v. Rubin/Chambers, Dunhill Insurance Services Inc., 09-cr-01058, U.S. District Court, Southern District of New York (Manhattan).
