WASHINGTON — The Justice Department announced Wednesday afternoon that Daniel Naeh, a former CDR Financial Products Inc. employee who is living in Israel, pleaded guilty Tuesday for his participation in bid-rigging and fraud conspiracies related to contracts for the investment of municipal bond proceeds and other muni contracts.
Naeh pleaded guilty in U.S. District Court in Manhattan to three criminal counts: bid-rigging, conspiracy and wire fraud. He faces prison sentences and fines of up to 10 years and $1 million for bid-rigging, five years and $250,000 for conspiracy, and 20 years and $250,000 for wire fraud.
The fines for each count also could be doubled depending on the amount of ill-gotten gains or losses suffered by victims, the Justice Department said in a release.
Naeh’s guilty plea comes about four months after CDR, its founder David Rubin, and two other individuals were indicted by a federal grand jury on nine criminal counts in connection with bid-rigging tied to municipal investment agreements and other contracts such as derivatives.
The two other individuals are Stuart Wolmark, the firm’s former chief financial officer and managing director, and Evan Andrew Zarefsky, its vice president.
CDR and the three individuals have all pled not guilty. A trial is scheduled to being in about one year.
