FBI Investigates Pickleball Entrepreneur in a Multimillion: The FBI has searched the Indiana home of Rodney Grubbs, former owner of “Pickleball Rocks” and “All About Pickleball LLC,” amid accusations of a multimillion-dollar scam involving investors. Federal bankruptcy court documents reveal that investors, including some from Arizona, claim Grubbs defrauded them.
Doug Smook, a tournament director at Happy Trails Pickleball Club in Arizona, invested $15,000 with Grubbs.
“I invested $15,000, and the promissory note was for a 14% interest over the year,” Smook said. He reported silence from Grubbs after requesting his money back in 2023.
Accusations of Fraudulent Investments
Attorney Matthew Foster, representing over 250 alleged victims, stated that Grubbs used promissory notes with high interest rates to solicit funds.
“There are hundreds of people that have been victimized,” Foster said.
Documents reveal that Grubbs’ dealings spanned two decades, promising returns tied to pickleball and real estate ventures.
Investors like Smook believed they were supporting the sport.
“I don’t think that I ever felt I was investing in Rodney. I was investing in pickleball, the sport of pickleball,” he shared.
Grubbs reportedly gained investors’ trust at tournaments, presenting himself as a charming and reliable advocate for the sport. Foster explained,
“People will tell you over and over and over, very folksy, very charming.”
Legal Action and Federal Investigations
Indiana’s Secretary of State issued a cease-and-desist order to Grubbs over an alleged fraudulent investment scheme tied to his company earlier this year. The promissory notes included a 12% monthly compounded interest rate and an 18% default penalty.
The FBI’s recent search marks a significant development, but it is unclear if Grubbs faces criminal charges. He has previously denied fraud allegations. Foster encourages victims to act, saying,
“Go to the FBI, call the FBI or the IRS. If a state law enforcement agency exists, such as the AG, they should file that complaint.”
Protecting Investors
Foster advises potential investors to take precautions.
“Get something in writing and get somebody else to look at it. Take it to a professional that you know, a CPA or a lawyer,” he said.
The FBI has urged anyone who invested with Grubbs to complete an online form. Many victims, like Smook, still seek answers.
“Rodney, where’s the money at?” Smook asked.
This investigation highlights the importance of caution in financial investments. While the legal process continues, the pickleball community awaits justice and accountability.
News in Brief: FBI Investigates Pickleball Entrepreneur in a Multimillion
The FBI searched Rodney Grubbs’ Indiana home amid allegations of a multimillion-dollar scam involving fraudulent investments tied to pickleball and real estate. Over 250 investors claim losses from high-interest promissory notes. Legal actions are underway, with victims encouraged to report. The pickleball community seeks justice and accountability.
ALSO READ: A Pickleball Ponzi Scheme? Rodney Grubbs Under Federal Investigation
