Bortezomib, Arsenic Trioxide, and Melphalan in Treating Patients Undergoing an Autologous Stem Cell Transplant For Multiple Myeloma

DISEASE CHARACTERISTICS: Inclusion criteria: * Confirmed diagnosis of multiple myeloma (M-protein by serum protein electrophoresis or urine protein electrophoresis) and either bone marrow biopsy and aspirate demonstrating a plasma cell count \> 10% or biopsy of a bone or soft tissue mass demonstrating a plasmacytoma * Demonstration of an indication for therapy based on symptoms (e.g., boney pain), hypercalcemia, anemia, renal insufficiency, symptomatic plasmacytomas, multiple boney lytic lesions, etc * Stable disease or has achieved a partial remission or complete remission to pre-transplant cyto-reductive therapy * Primary refractory disease (no response to therapy but stable) is permitted * Candidate for high-dose chemotherapy with autologous stem cell transplantation based on stabilization of disease with preparative chemotherapy (regardless of the specific agents) * A minimum of 2 x 10\^6 CD34+ cells/kg must be collected prior to proceeding to transplant Exclusion criteria: * Evidence of active plasma cell leukemia * Relapsed refractory disease (patients who have achieved at least a partial response \[PR\] to previous therapy and are now refractory \[have not achieved a PR to subsequent therapy\]) * Progressive disease on their last therapy PATIENT CHARACTERISTICS: Inclusion criteria: * Karnofsky performance status 60-100% * Creatinine \< 3.0 mg/dL * AST and ALT \<2.5 times upper limit of normal * Total bilirubin \< 3 mg/dL * WBC ≥ 2,000/mm³ * Platelet count ≥ 50,000/mm³ * If abnormal hematologic function is attributable to bone marrow infiltration by multiple myeloma, the principal investigator will decide on a case-by-case basis if the patient's bone marrow reserve is appropriate for this study * Females of childbearing potential must have a negative serum pregnancy test prior to enrollment on the study and must use an effective barrier method while on the study * Ejection fraction \> 40% and no history of uncontrolled ischemic heart disease or congestive heart failure * No evidence of cardiac amyloidosis by echocardiogram * DLCO and FEV\_1 ≥ 50% Exclusion criteria: * Active peripheral neuropathy ≥ grade 2 * Recurrent supraventricular arrhythmia or any type of sustained ventricular arrhythmia or conduction block (e.g., A-V block grade II or III, left bundle branch block) * Known HIV infection * Pregnant or lactating women * Underlying medical condition that could be aggravated by the treatment or life-threatening disease unrelated to myeloma as evaluated by the enrolling physician * History of second malignancy within the past 3 years and not in complete remission from that malignancy, excluding adequately treated basal or squamous cell carcinoma of the skin, carcinoma in situ of the cervix, or local prostate cancer * History of preexisting neurological disorders (grade 2 or higher by the NCI Common Toxicity Criteria, in particular seizure disorders) PRIOR CONCURRENT THERAPY: Inclusion criteria: * Previous radiation therapy for palliation of cord compression or pathologic fractures is permitted provided last dose is given 14 days prior to initiation of chemotherapy * Subjects with radiographic evidence of lytic bone disease receiving concomitant bisphosphonate therapy may be enrolled * Bisphosphonates should be held at least 1 week prior to the transplant but continuing bisphosphonates after day +60 is at the discretion of the treating physician Exclusion criteria: * Previous autologous or allogeneic transplantation * Other investigational or experimental drug or therapy while on the study