FBI raids Indiana home of man at center of pickleball scandal

Alex Lantz

Director of Written Content

Last Edited

Dec 05 2024

Category

News

One of the most bizarre stories in pickleball took another turn Wednesday when the FBI raided the Indiana home of a man who is accused of defrauding investors in his pickleball company of more than $50 million.

Rodney “Rocket” Grubbs, the former owner of apparel and equipment brand Pickleball Rocks, was forced into bankruptcy earlier this year by a federal court after hundreds of investors said he had defrauded them of millions of dollars.

That forced him to close his brick and mortar store and withdraw from tournament participation.

The facts of the case:

More than 300 creditors – including mostly couples and individual pickleball enthusiasts – have come forward.
In total, they say Grubbs owes them more than $57 million.
Grubbs has denied any wrongdoing, but has admitted to owing $47.5 million.

Wall Street Journal reporting from earlier this year shows Grubbs is worth $1.6 million. He told the media outlet that he "never issued a loan he didn’t intend to repay" and that he does not have any hidden assets.

Grubbs claims the pandemic significantly impacted his business, which he said he hoped to reinvigorate before being forced to declare bankruptcy.

He also was forced to auction off his warehouse of pickleball gear in an attempt to repay his jilted investors, but that auction only brought pennies on the dollar back to a portion of those who say they were scammed.

“The world’s most recognized pickleball apparel brand,” as Grubbs referred to his company, was mostly funded by the founder issuing promissory notes typically worth $25,000 at 12% interest.

While Grubbs has not been charged with a crime, he was issued a cease and desist order by the Securities Division of the Indiana Secretary of State earlier this year because he wasn’t registered to offer short-term, high-interest promissory notes. The office said Grubbs was operating an alleged fraudulent investment scheme.

Many of the investors, including an 87-year-old woman who says Grubbs pressured her into using some of her retirement money, have said they couldn’t get Grubbs to return their money and think he should be held criminally liable for the alleged fraud.

It’s unclear what federal agents were searching for at Grubbs’ home in Brookville, Indiana, on Wednesday, but the agency issued a statement urging potential victims in the scandal to come forward.

"The FBI is legally mandated to identify victims of federal crimes it investigates. Victims may be eligible for certain services, restitution, and rights under federal and/or state law," the statement said.

"Your responses are voluntary but may be useful in the federal investigation and to identify you as a potential victim. Based on the responses provided, you may be contacted by the FBI and asked to provide additional information. All identities of victims will be kept confidential."

Potential victims are encouraged to fill out a form on the FBI’s website.

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