Latest news with #RodneyGrubbs
Yahoo
28-05-2025
- Business
- Yahoo
Bankruptcy trustee seeks return of payments Pickleball Rocks founder sent pre-bankruptcy
As he was faced with a growing chorus of complaints from unpaid investors, embattled Indiana pickleball entrepreneur Rodney Grubbs wired money to a select group of creditors in late 2023. From October through December that year, Grubbs sent payments totaling more than $80,000 to assuage investors in Indiana, Ohio, Florida and North Carolina. Now, the trustee overseeing Grubbs' federal bankruptcy case is attempting to claw back that money to help repay other investors who claim they are owed millions from the Brookville businessman. More: 5 things to know about Rodney Grubbs and the fraud accusations involving Pickleball Rocks In recent proceedings in federal court in Indianapolis, an attorney representing trustee Joanne Friedmeyer told the judge she tried to get several individuals to return money Grubbs had sent them in 2023 to settle debts. Still, the recipients have refused to give the money back to the bankrupt estate despite written demand. Investors from across the U.S. have accused Grubbs of operating a Ponzi Scheme, an accusation he's denied in court. He's accused of bilking hundreds of pickleball and real estate investors out of an estimated $57 million — the vast majority obtained from unsecured creditors he encountered traveling to pickleball tournaments around the country. Grubbs allegedly lured them with an exciting opportunity to secure the last remaining spot in a small circle of investors for Pickleball Rocks, his Indiana-based equipment and apparel company, in exchange for investments of $25,000 or more. Their money, he pledged, would help the business grow and fulfill bigger contracts. Grubbs issued investors unsecured promissory notes paying a 12% interest rate compounded monthly, with lump sum repayments after 18 months. Investors also were to received an 18% return if he defaulted. There was just one problem: Many said they never got their money back. In some cases, Grubbs would roll over promissory notes with continued promises to repay investors even greater dividends. However, just weeks before frustrated investors pushed Grubbs into involuntary bankruptcy, he sent $25,000 to an Ohio man on Oct. 27, 2023, and $13,792 to a Zionsville man on Nov. 28, 2023. Grubbs also sent $16,750 to a North Carolina man on Dec. 6, 2023, and made three wire transfers totaling $25,000 to a Florida man in October, November and December of that year. A fifth individual and the estate of a sixth person who received payments from Grubbs in late 2023 agreed to return the money they received, opting instead to settle for smaller amounts. The individuals who received payments from Grubbs declined to speak with IndyStar about the trustee's attempt to get back the money or did not return phone calls. Grubbs, who could not be reached for comment, made all of the payments within the 90-day period leading up to the bankruptcy filing. Friedmeyer, the trustee, claims in court documents that the transfers resulted in the individuals receiving more than they would have gotten from the Chapter 7 bankruptcy case. Neither she nor her attorney Joseph Mulvey responded to requests for comment. Alvin Velazquez, an associate law professor at Indiana University's Maurer School of Law, said bankruptcy law is typically skeptical of anything that happens during the roughly 3-month period before a business goes belly up. "When a trustee is appointed, they have to look at all of the claims and the code allows them to claw back money that was paid out 90 days before — unless the court finds that it was a typical commercial transfer," said Velazquez, who teaches classes on corporations, labor law and bankruptcy. More: 5 things to know about Rodney Grubbs and the fraud accusations involving Pickleball Rocks To the average person, this might seem unfair. But the professor, who said he has not reviewed Grubbs' case, said this part of bankruptcy law serves a purpose. "The trustee has a duty to all creditors," he said speaking generally. "It's making sure the debtor isn't preferring his uncle, his brother, his family over other legitimate creditors. " Grubbs' bankruptcy case now has 335 creditors, mostly represented by attorney Matt Foster. Several banks have also submitted claims. According to court documents, he was in debt to all of the individuals who are being asked to return money. More: Meet the attorney behind the hundreds of pickleball investors who gave money to Rodney Grubbs The attorney for Friedmeyer, however, writes the transfers were made at a time when Grubbs had more debt than assets. The trustee discovered the payments via an examination of Grubb's Statement of Financial Affairs and documents from FCN Bank obtained by a subpoena. The far-reaching case has dragged on for more than a year and half. Fed up and realizing they had been promised the same investment opportunity, a handful of investors sued to force Grubbs into bankruptcy and stop him from issuing new promissory notes. Hundreds of others also joined the case seeking repayment, including his own children. Agents from the FBI raided his Brookville home last December. Grubbs has not been charged with a crime. Last week, in a roughly 7-minute hearing, he waived the ability to do away with his debts when the Chapter 7 bankruptcy is concluded, meaning he's still on the hook to investors. The judge in that hearing said they can now pursue him outside of the bankruptcy court if they wish. Contact IndyStar investigative reporter Alexandria Burris at aburris@ Follow her on X, formerly Twitter, at @allyburris. This article originally appeared on Indianapolis Star: Trustee seeks return of money Pickleball Rocks founder sent to creditors
Indianapolis Star
28-05-2025
- Business
- Indianapolis Star
Bankruptcy trustee seeks return of payments Pickleball Rocks founder sent pre-bankruptcy
As he was faced with a growing chorus of complaints from unpaid investors, embattled Indiana pickleball entrepreneur Rodney Grubbs wired money to a select group of creditors in late 2023. From October through December that year, Grubbs sent payments totaling more than $80,000 to assuage investors in Indiana, Ohio, Florida and North Carolina. Now, the trustee overseeing Grubbs' federal bankruptcy case is attempting to claw back that money to help repay other investors who claim they are owed millions from the Brookville businessman. More: 5 things to know about Rodney Grubbs and the fraud accusations involving Pickleball Rocks In recent proceedings in federal court in Indianapolis, an attorney representing trustee Joanne Friedmeyer told the judge she tried to get several individuals to return money Grubbs had sent them in 2023 to settle debts. Still, the recipients have refused to give the money back to the bankrupt estate despite written demand. Investors from across the U.S. have accused Grubbs of operating a Ponzi Scheme, an accusation he's denied in court. He's accused of bilking hundreds of pickleball and real estate investors out of an estimated $57 million — the vast majority obtained from unsecured creditors he encountered traveling to pickleball tournaments around the country. Grubbs allegedly lured them with an exciting opportunity to secure the last remaining spot in a small circle of investors for Pickleball Rocks, his Indiana-based equipment and apparel company, in exchange for investments of $25,000 or more. Their money, he pledged, would help the business grow and fulfill bigger contracts. Grubbs issued investors unsecured promissory notes paying a 12% interest rate compounded monthly, with lump sum repayments after 18 months. Investors also were to received an 18% return if he defaulted. There was just one problem: Many said they never got their money back. In some cases, Grubbs would roll over promissory notes with continued promises to repay investors even greater dividends. However, just weeks before frustrated investors pushed Grubbs into involuntary bankruptcy, he sent $25,000 to an Ohio man on Oct. 27, 2023, and $13,792 to a Zionsville man on Nov. 28, 2023. Grubbs also sent $16,750 to a North Carolina man on Dec. 6, 2023, and made three wire transfers totaling $25,000 to a Florida man in October, November and December of that year. A fifth individual and the estate of a sixth person who received payments from Grubbs in late 2023 agreed to return the money they received, opting instead to settle for smaller amounts. The individuals who received payments from Grubbs declined to speak with IndyStar about the trustee's attempt to get back the money or did not return phone calls. Grubbs, who could not be reached for comment, made all of the payments within the 90-day period leading up to the bankruptcy filing. Friedmeyer, the trustee, claims in court documents that the transfers resulted in the individuals receiving more than they would have gotten from the Chapter 7 bankruptcy case. Neither she nor her attorney Joseph Mulvey responded to requests for comment. Alvin Velazquez, an associate law professor at Indiana University's Maurer School of Law, said bankruptcy law is typically skeptical of anything that happens during the roughly 3-month period before a business goes belly up. "When a trustee is appointed, they have to look at all of the claims and the code allows them to claw back money that was paid out 90 days before — unless the court finds that it was a typical commercial transfer," said Velazquez, who teaches classes on corporations, labor law and bankruptcy. More: 5 things to know about Rodney Grubbs and the fraud accusations involving Pickleball Rocks To the average person, this might seem unfair. But the professor, who said he has not reviewed Grubbs' case, said this part of bankruptcy law serves a purpose. "The trustee has a duty to all creditors," he said speaking generally. "It's making sure the debtor isn't preferring his uncle, his brother, his family over other legitimate creditors. " Grubbs' bankruptcy case now has 335 creditors, mostly represented by attorney Matt Foster. Several banks have also submitted claims. According to court documents, he was in debt to all of the individuals who are being asked to return money. More: Meet the attorney behind the hundreds of pickleball investors who gave money to Rodney Grubbs The attorney for Friedmeyer, however, writes the transfers were made at a time when Grubbs had more debt than assets. The trustee discovered the payments via an examination of Grubb's Statement of Financial Affairs and documents from FCN Bank obtained by a subpoena. The far-reaching case has dragged on for more than a year and half. Fed up and realizing they had been promised the same investment opportunity, a handful of investors sued to force Grubbs into bankruptcy and stop him from issuing new promissory notes. Hundreds of others also joined the case seeking repayment, including his own children. Agents from the FBI raided his Brookville home last December. Grubbs has not been charged with a crime. Last week, in a roughly 7-minute hearing, he waived the ability to do away with his debts when the Chapter 7 bankruptcy is concluded, meaning he's still on the hook to investors. The judge in that hearing said they can now pursue him outside of the bankruptcy court if they wish.
