BROOKVILLE, Ind. — A lawyer representing hundreds of people alleges that former pickleball business owner Rodney Grubbs swindled his clients out of millions of dollars by having them invest in real estate and his former business, Pickleball Rocks.
The multi-million dollar pickleball scandal has launched investigations by the Indiana Secretary of State's Office and the FBI. Two weeks ago, federal agents raided Grubbs' Brookville, Indiana home.
Matthew Carter, the Indianapolis attorney representing nearly 250 people against Grubbs, told WCPO his clients "have money, and they're very, very motivated because (Grubbs) exploited them."
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
On Wednesday, we encountered Grubbs to get his side of the story. Seconds after he pulled up to his home, we approached him, but then he drove off.
The FBI is investigating Grubbs' business practices, and authorities are asking anyone who has invested in Pickleball Rocks to come forward because they may be victims of a crime.
We previously talked with Teri Siewert from Florida, an alleged victim.
Carter said the pitch from Grubbs to invest in his business was usually a variation of the same pitch. Grubbs allegedly made it seem like there were only six investors, and a spot recently opened up. Then, he would allegedly give them promissory notes with high interest rates. However, Carter said almost all his clients never got their money back.
According to federal bankruptcy records obtained by WCPO, Grubbs owes nearly $47 million to various people across the U.S.
"He's admitted in court papers, 'No, I didn't run a Ponzi scheme. I just had to get money from new investors to pay off old investors,' and then I thought you really have no idea do you?" Carter said.
We also found that on the same day the FBI raided Grubbs' home, he signed over the deed to the house to a neighbor. Carter said the neighbor may now lose the home because of judgments against Grubbs.
"Under the law, they have judgment liens whether recorded or not that stick with the property so in him selling that property to her those liens go with it," Carter said. "Bottom line is she didn't know anything about it, she's a victim."
Carter said investors aren't confident they'll get their money back from Grubbs, but they're glad he's finally being held accountable.
"My hope is that he's going to end up in jail," Carter said. "I don't think that the FBI and the IRS would've raided if there weren't something there."
In January, Indiana Secretary of State Diego Morales issued a cease and desist order to Grubbs "to stop an alleged fraudulent investment scheme" regarding his pickleball apparel and equipment company All About Pickleball LLC. aka Pickleball Rocks.
The petition alleges Grubbs solicited investments in the form of promissory notes from investors that "contained a high interest rate of 12% compounded monthly and contained an 18% penalty provision in the case of default."
According to the Secretary of State's Office, Grubbs allegedly met and solicited investors at pickleball tournaments. Many of those investors have not been repaid.
