SOMIS : Couple Convicted of Bankruptcy Fraud

A Somis accountant who prosecutors said leased two Maseratis, a Jaguar convertible and a Lincoln Town Car just months before filing for bankruptcy was convicted this week on nine counts of bankruptcy fraud and tax evasion.

Special Assistant U.S. Atty. Steven Jay Katzman said Wednesday that Robert P. Dubin, 52, was convicted of failing to report more than $1 million he had allegedly embezzled from a client, Arrow Highway Steel, on his income tax returns.

Dubin was also convicted of failing to report assets--including $9,500 worth of jewelry and 10 fur coats valued at $42,460--when he filed for bankruptcy.

After deliberating for five hours Monday, a federal jury in Los Angeles convicted Dubin and his wife, June Helen Dubin.

Dubin, who now lives in Palm Springs, maintained his innocence in an interview Wednesday, saying he was the victim of zealous prosecutors out to defend a federal bankruptcy trustee he had complained about.

“The government was after us,” Dubin said. “As far as I’m concerned, we did nothing wrong.”

Dubin said the Arrow Highway Steel money was for a business venture that his client was investing in, and that his wife had bought the jewelry without his knowledge.

The fur coats?

“I forgot about them. It was the middle of July. Who thinks about fur coats?” said Dubin, adding that of the 10 furs, two were hats, one was a muff, three were jackets and one was bought after the bankruptcy.

The Dubins will be sentenced Jan. 18. Robert Dubin faces a maximum of 31 years in prison and a fine of $1.45 million. June Dubin, who was convicted of two counts of bankruptcy fraud and the filing of false tax returns, faces up to 10 years in prison and a $500,000 fine, Katzman said.