Pa. work worth $600K to firm named in probe

January 7, 2009 9:06:52 AM PST
A California company under investigation in connection with campaign contributions to New Mexico's governor has made about $600,000 from a no-bid contract it holds with a Pennsylvania state agency. CDR Financial Products Inc. was hired by the Pennsylvania Housing Finance Authority in 2003 to serve as an adviser on complex investments known as swap derivatives.

Authority director Brian Hudson says the Beverly Hills-based firm received $599,000, most of it as a percentage on bond issues that the authority floated in the early years of the contract. He says CDR's expertise translated into at least $2 million in savings for the authority, which helps arrange financing for first-time homebuyers.

CDR and its owner, David Rubin, contributed $40,000 to Pennsylvania Gov. Ed Rendell's campaigns.

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