Pickleball Business Owner Accused of Defrauding: Former pickleball business owner Rodney Grubbs is facing allegations of defrauding hundreds of investors out of millions of dollars. Grubbs, who previously owned Pickleball Rocks, is accused of convincing clients to invest in real estate and his business, only for them to lose their money.
The scandal has led to investigations by the Indiana Secretary of State’s Office and the FBI. Federal agents raided Grubbs’ Brookville, Indiana home two weeks ago.
We showed up as federal agents were bringing out boxes from Rodney Grubbs home in Brookville Indiana. He’s been accused of swindling hundreds of people to invest in his company, which totaled millions. He’s known for his pickleball business @WCPO pic.twitter.com/2BgKEDYBxZ
— Bret Buganski (@Bret_Buganski) December 4, 2024
Alleged Scheme and Fraudulent Practices
Matthew Carter, an attorney representing nearly 250 victims, claimed Grubbs used a deceptive investment pitch to secure funds. Grubbs reportedly told potential investors there were only a few spots available, promising high returns through promissory notes with interest rates as high as 12%. However, Carter said that almost none of the investors were repaid.
According to federal bankruptcy records, Grubbs owes nearly $47 million to creditors across the country. In court documents, Grubbs admitted that while he did not run a Ponzi scheme, he used new investments to pay off old ones.
FBI Investigation and Home Sale
The FBI’s investigation into Grubbs’ practices continues, with authorities urging anyone who invested in Pickleball Rocks to come forward. On the same day as the FBI raid, Grubbs signed over the deed to his home to a neighbor. Carter warned that the neighbor may lose the property due to the outstanding debts Grubbs owes, as judgment liens would stick to the house.
Legal Actions and Accountability
Carter stated that while investors are doubtful they will recover their money, they are hopeful that Grubbs will be held accountable for his actions.
“My hope is that he’s going to end up in jail,” (Matthew Carter).
Grubbs allegedly solicited investments through promissory notes offering high interest rates and penalties in case of default. The Secretary of State’s Office reports that Grubbs met many investors at pickleball tournaments, a tactic that may have contributed to the large number of people caught up in the alleged scam.
As investigations unfold, the fate of Grubbs and the possibility of restitution for victims remain uncertain.
News in Brief: Pickleball Business Owner Accused of Defrauding
Former pickleball business owner Rodney Grubbs faces allegations of defrauding hundreds of investors out of millions through deceptive real estate and business investments. Investigations by the Indiana Secretary of State and the FBI have been launched, following a raid on Grubbs’ home. Grubbs reportedly owes nearly $47 million to creditors, and victims are doubtful about recovering their funds.
ALSO READ: A Pickleball Ponzi Scheme? Rodney Grubbs Under Federal Investigation
