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US: Bid-rigging advisor avoids prison sentence

By  |  March 13, 2014

Despite recommendations from prosecutors for a prison sentence of nearly 20 years, reports say financial advisor David Rubin, who was found guilty of bid-rigging, was sentenced to just two years probation on Wednesday, say reports.

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    Rubin is one of about 20 ex-bankers from institutions including JPMorgan Chase, Bank of America and Wells Fargo that are prosecuted for allegations of a bid-rigging conspiracy that manipulated municipal bond deals; Rubin pleaded guilty to three counts of conspiracy, as well as conspiracy to restrain trade, in 2011.

    In addition to a $5.65 million fine, he was sentenced to probation Wednesday. According to reports, the Federal District Court in Manhattan said it would be a “gross injustice” to send him to prison, as he had just learned of his wife’s pancreatic cancer.

    The bid-rigging collusion reportedly had a hand in the bankruptcy filings of the cities of Detroit; Jefferson County, Alabama; San Bernardino and Vallejo, California.

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