Arsenic Trioxide and Ascorbic Acid Combined With Bortezomib, Thalidomide, and Dexamethasone in Treating Patients With Relapsed or Refractory Multiple Myeloma or Plasma Cell Leukemia

DISEASE CHARACTERISTICS: * Histologically confirmed multiple myeloma (MM) or plasma cell leukemia meeting 1 of the following criteria: * Relapsed or refractory disease after treatment with prior effective therapy * Exhibited \< a partial response to the last therapy * Measurable disease, defined by 1 of the following: * Serum M protein ≥ 1.0 g/dL * Urine M-protein ≥ 500 mg/24 hours * Plasmacytoma with bidimensional measurements on CT scan or MRI (each axis ≥ 1 cm) * Previously treated with ≥ 1 induction chemotherapy regimen for MM * No known CNS involvement by multiple myeloma PATIENT CHARACTERISTICS: Age * 18 and over Performance status * Zubrod or SWOG 0-2 OR * Karnofsky 60-100% Life expectancy * More than 12 weeks Hematopoietic * WBC ≥ 1,500/mm\^3 * Absolute neutrophil count ≥ 1,000/mm\^3 * Platelet count ≥ 80,000/mm\^3 * Hemoglobin ≥ 8.5 g/dL * No history of heparin-induced thrombocytopenia * Low blood counts allowed if marrow is heavily infiltrated by multiple myeloma Hepatic * Bilirubin ≤ 1.5 times upper limit normal (ULN) * AST and ALT ≤ 2.5 times ULN Renal * Creatinine ≤ 2.5 mg/dL Cardiovascular * QTc \< 480 msec on EKG in the presence of serum potassium ≥ 4.0 mEq/dL and serum magnesium ≥ 1.8 mg/dL * LVEF ≥ 55% by ECHO or MUGA * No prior deep vein thrombosis, unless on concurrent anticoagulation * No symptomatic congestive heart failure * No unstable angina pectoris * No history of ventricular arrhythmia Other * Not pregnant or nursing * Negative pregnancy test * Fertile patients must use effective contraception during and for 6 months after completion of study treatment * No history of allergic reactions or severe adverse reactions attributed to compounds of similar chemical or biological composition to study drugs * No other malignancy in the past 2 years except adequately treated nonmelanoma skin cancer or carcinoma in situ of the cervix * No peripheral neuropathy ≥ grade 2 * No ongoing or active infection requiring IV antibiotics * No psychiatric illness or social situation that would preclude study compliance * No other uncontrolled illness * Controlled HIV disease allowed as long as there are no associated comorbid complications * No active peptic ulcer disease * No other condition that would confer a high risk of bleeding complications PRIOR CONCURRENT THERAPY: Biologic therapy * More than 4 weeks since prior thalidomide or lenalidomide for MM * Prior autologous or allogeneic stem cell transplant for MM allowed * Concurrent hematopoietic growth factors (e.g., epoetin alfa, filgrastim \[G-CSF\]) for MM allowed Chemotherapy * See Disease Characteristics * More than 4 weeks since prior arsenic trioxide for MM Endocrine therapy * More than 4 weeks since prior corticosteroids for MM Radiotherapy * More than 4 weeks since prior therapeutic radiotherapy (e.g., to plasmacytomas) * Palliative radiotherapy for painful symptomatic lytic skeletal lesions allowed within the past 4 weeks Surgery * Not specified Other * More than 4 weeks since prior cytotoxic agents or other therapy (e.g., bortezomib) for MM * More than 30 days (or 5 half-lives) since prior investigational agents * Concurrent bisphosphonates for MM allowed * No other concurrent anticancer therapy * No other concurrent investigational agents