FBI Targets Former Pickleball Tycoon: The FBI confirmed the execution of a federal search warrant today at the Brookville home of Rodney Grubbs, the former owner of Pickleball Rocks. Grubbs is at the center of an alleged $50 million Ponzi scheme that has left many investors in financial turmoil. The agents’ presence at his home in the 300 block of East 11th Street stirred concern among Grubbs’ investors, who had already been struggling to recover their funds.
Grubbs Faces Growing Legal Pressure
Rodney Grubbs, who was once celebrated as a major figure in pickleball, is accused of defrauding over 335 investors in real estate and pickleball-related ventures. These individuals, many of whom are couples or families, have collectively claimed that Grubbs owes them approximately $57 million.
Despite these accusations, Grubbs continues to deny any wrongdoing, though he has admitted to owing at least $47 million. The situation has reached a crisis point, with a federal bankruptcy court forcing him into bankruptcy earlier this year.
The Alleged Ponzi Scheme
According to court records, Grubbs convinced his investors to contribute at least $25,000 each, promising them high returns. He guaranteed a 12% interest rate, compounded monthly, with a lump sum repayment after 18 months.
In cases where he defaulted, Grubbs raised the interest rate to 18%. Grubbs allegedly used this strategy to keep investors’ money flowing into the scheme, while many reported struggling to get their funds back.
FBI Seeks Victims in Ongoing Investigation
In the wake of the FBI’s search, law enforcement has called for potential victims to come forward. The agency, along with assistance from the IRS-Criminal Investigation division and the Indiana Secretary of State’s office, is working to identify individuals who may have been affected by Grubbs’ alleged fraudulent activities. The FBI has urged people who invested with Grubbs to fill out a form on its website to provide additional information.
Local Community Impact
The small town of Brookville has been rocked by the scandal. Bridget Hayes, president of the Brookville Town Council, shared the emotional toll the case has taken on local residents.
“Some very dear friends of mine have been investors, and it has been a very trying time for a lot of people in town that did invest.” – (Bridget Hayes)
Local law enforcement was present during the search, and a portion of 11th Street was closed off for security.
News in Brief: FBI Targets Former Pickleball Tycoon
FBI agents executed a search warrant at the home of former Pickleball Rocks owner Rodney Grubbs, who is accused of running a $50 million Ponzi scheme.
Grubbs allegedly defrauded hundreds of investors through real estate and pickleball ventures, leading to claims of over $57 million owed. The FBI is seeking additional victims to aid in the investigation, while Grubbs has denied the allegations despite admitting to owing millions.
ALSO READ: Murray Celebrates Pickleball Expansion with Groundbreaking Ceremony