THE VILLAGES, Fla. (WFLA) — Rodney Grubbs has been a bit of a star in the fast-growing sport of pickleball, but now fellow players are taking him to a different court, claiming he did not deliver on an investment promise.
Jennifer Butler, a retired airline pilot who lives in The Villages retirement community in Florida, said many investors considered Grubbs to be their friend.
“We trusted Rodney Grubbs 100%,” Butler said. “He was a very trusted friend.”
Grubbs also had the cachet of being named an ambassador by USA Pickleball. Because of his early advocacy of the game, some thought Grubbs also deserved to be in the Pickleball Hall of Fame.
But Grubbs is now accused of using that trust to convince investors to sink their money into his apparel and equipment company, Pickleball Rocks.
An Indiana Secretary of State cease-and-desist order alleges Grubbs and his company “committed securities fraud” by selling unregistered investment vehicles.
Butler said Grubbs told her there was “one more slot” available for an investor. But according to Indiana investigators, there were many purported last slots.
“Grubbs has routinely told investors that Rocks has an ever-recurrent one last available slot to invest at $25,000,” the cease-and-desist document states.
In a series of unrelated real estate disputes dating back several years, an Indiana state judge recently ordered Grubbs to pay more than $9 million in court judgments, including nearly $4 million to Florida resident Philip Piche.
Butler, who invested $90,000 with Grubbs’ pickleball company, is one of several Florida residents who thought the offer of a 12% return after 18 months was too good to pass up.
“I trusted him. I was absolutely sure,” Butler said. “He was a good friend and that’s what hurts sometimes even more than the money.”
Butler acknowledged she defended the claims against Grubbs at first.
“When it all blew up, I said, ‘I don’t think Rodney Grubbs would do anything to hurt anyone on purpose,'” Butler recalled. “But I was wrong.”
A Facebook page created by Florida investor Teri Siewert is credited for starting a chain reaction of concern.
Butler said suspicion mounted when investors like her asked for their money.
“When you ask for the money back, you hear not a peep,” Butler said. “He doesn’t answer you.”
Grubbs has not answered questions from Nexstar’s WFLA about the claims either.
Butler will testify at a hearing scheduled for Wednesday in Federal Court in Indianapolis, where investors will try to force Grubbs into Chapter 7 bankruptcy.
If the judge decides in their favor, Grubbs would have to sell his assets to repay the investors.
In his response to the forced bankruptcy case, Grubbs has said he cannot afford an attorney. He also made a number of notable disclosures.
He estimates “(there) are no less than 250 outstanding (creditors)” who potentially could benefit from a sale of his assets. The only assets he listed are “11 single low-income family rental properties” that he estimates are valued at $800,000 and his Pickleball Rock business plus inventory valued at $150,000.
The remainder of Grubbs’ filing amounts to a sales pitch. Instead of the liquidation of a Chapter 7 proceeding, the case should be moved to a Chapter 11 business reorganization allowing Grubbs to stay in business with the purpose of generating more money for creditors, he said.
Grubbs pointed out the growth of Pickleball and the economic opportunities of potential sales to new players.
“With a good management team, Pickleball Rocks can and will continue to grow,” he wrote.
Grubbs also dismisses any notion that his business’ reputation has been irreparably harmed: “There are millions of new players coming into the sport now and in the future. The vast majority of pickleball players … do not use social media and will not be impacted by the current news.”
Butler and her fellow pickleball players no doubt believe in the sport as well, but no longer believe in Grubbs’ promises.
“Some of them gave their whole life savings to him,” Butler said. “How devastating is that?”
