House arrest and restitution for Fumo ally

Mitchell Rubin, fired last year as chairman of the Pennsylvania Turnpike Commission, will serve six months under house arrest and pay back the taxpayers $150,000, but be spared a possible prison term under a plea deal with federal prosecutors.

Rubin, 58, has agreed to plead guilty to trying to obstruct the FBI's investigation into his onetime friend, former State Sen. Vincent J. Fumo, according to court documents filed yesterday.

A year ago today, Fumo and Rubin's wife, Ruth Arnao, a former Fumo aide, were convicted on federal charges of conspiracy, fraud, and obstruction of justice. Fumo, once one of Pennsylvania's most powerful Democrats, is serving a 55-month sentence, and Arnao is serving a one-year sentence, both in Kentucky prisons. Arnao, 53, is to be released in May.

Among the many charges of which Fumo was found guilty was that he had arranged for the state Senate to pay Rubin $150,000 in a no-work contract, rewarding him for being a Fumo crony.

Prosecutors and the FBI said that Rubin and Arnao lived the high life with Fumo, enjoying free luxury-yacht cruises with him and lavish meals while Fumo systemically ripped off a pair of nonprofit organizations and the Senate.

The plea deal follows months of negotiation with Rubin after FBI agent Vicki Humphreys handed him a "target letter," warning him of possible indictment, in a posttrial Fumo hearing a year ago.

Rubin was adamant that he had earned the money, providing key advice to Fumo. Prosecutors John J. Pease and Robert A. Zauzmer disputed that and said that 11 former aides or consultants to Fumo said they were unaware of any work that Rubin performed.

In the final deal, Rubin did not admit defrauding the Senate, though he agreed to pay it the $150,000.

But he did acknowledge providing the prosecutors and agent Humphreys and former FBI agent Kathleen M. McAfee with an ever-changing explanation of his role.

At first, Rubin told the investigators and a grand jury that he worked primarily with Fumo's staff and not directly with the senator, handling such tasks as tracking down a deed or a legal judgment.

In maintaining this, prosecutors said, Rubin and Fumo "parroted a basic story: that any transaction the government questioned was ordinary, and did not involve Fumo personally."

But once the FBI and prosecutors punctured this, the government said in its filing yesterday, Rubin adopted a new stance, saying that his function was indeed to serve as a Fumo adviser.

"While continuing to deny any fraud allegation, he admits that he endeavored to mislead the FBI and to obstruct the grand jury proceeding," prosecutors said in their filing.

Through his attorney, Joseph P. Grimes, Rubin declined to comment.

The deal specified that Rubin is to be under house arrest with electronic monitoring for six months. He is permitted to leave the house Monday through Friday to work, however. After the six months, he is to be on probation for 41/2 years.

After news broke of the target letter, Gov. Rendell removed Rubin from the Turnpike Commission.

Rubin served on the turnpike authority for 11 years, including six as chairman. Fumo originally selected him for the commission.

The deal struck with Rubin was similar to that reached with another Fumo ally, S. Michael Palermo. In January, Palermo was placed on probation after pleading guilty to conspiracy to commit mail fraud in connection with $287,000 paid him under a no-work Senate contract.