Rubin, his investment advisory firm and two of its employees were named on Oct. 29 in a federal indictment in U.S. District Court in the Southern District of New York. The nine- count criminal conspiracy case alleges bid rigging and price fixing on investments that CDR brokered from 1998 to 2006. Rubin is contesting the charges.
CDR advises schools, towns and utilities on how to invest their tax-exempt debt proceeds. It also packages credit guarantees that make the bonds of small agencies such as Region III salable to institutional investors.
JOE EMAILS:
You can read the whole thing, but this is essentially what happens. Goatdung, NM raises $25 million to build schools. The town gets the $25 million from investors and the town cannot spend that money right away. So the town has to invest it. Problem is, no one in cornpone NM can invest more than a plug nickel. Plus, these funds have special tax rules, so they must be invested according to certain guidelines. Along comes David Rubin and says, hey, i am a broker, and i know the big investment dudes on wall street who can invest the $25 million for you until you are ready to build schools for your infernal minority population.
What Rubin is supposed to do (and this is what he tells the city fathers he is doing) is line up competitive bids from investment houses and Rubin gets a very small fee. Instead, what Rubin does is line up one investment house to get the business. That investment house offers the town a really lousy interest rate and they get the business because Rubin places it with them. Rubin then gets a kickback from the investment house, who just took the city for a nice hunk of change by giving them a low return – the kickback are small $4,500 a pop – no one would even notice – someone obviously ratted Rubin out.
This is all pretty confusing, especially when you are dealing with dumb stiffs like Governor Richardson in New Mexico who think that the free market means that you can go to the market and get free food with food stamps. Because some of the fraud was so obvious, Rubin would create phony bids, shills, bogus markets – he was basically operating a high finance enterprise like some crum bum on ESPN going all in on a straight draw.
The bottom line is that taking money from goyim is all too easy and probably should not even be against the law. My guess is that Rubin does not go down on this one – he will plea, but no one wants the headache of putting this case in front of an inner city jury – it is too confusing. The bad part of the plea is that Rubin will be enjoined from working in the bond market – but I am sure he can create other entities to do so – Rubin is a sharp jew, i would not lose sleep over him.
