THE VILLAGES, Fla. (WFLA) — Rodney Grubbs is well known in the pickleball world, but the end result he claimed delivered on a different court in red was far more than some expected. It was done.
In a summary of assets and liabilities filed in the forced bankruptcy of his sports apparel and equipment company, Pickleball Rocks, Grubbs reported debts of nearly $47 million. The Indiana resident reported assets of just under $1.6 million.
Many of Grubbs’ investors live in Florida, and they claim they were promised a 12% return over 18 months on every $25,000 they invested in Grubbs’ company.
Investors from around the country filed a federal complaint in Indianapolis to force Grubbs to liquidate, said attorney Matthew Foster. Foster said some of the victims live outside the country.
Jennifer Butler of The Villages invested $90,000 in Grubbs. Mr. Butler and most of the other investors said Mr. Grubbs was a trusted friend.
“It’s shocking,” Butler said of Grubbs’ declared debt.
But she doesn’t believe Mr. Grubbs was reporting the truth.
“Where is the money he borrowed from all these people?” she wondered. “Where is the money? Our trustees and lawyers are looking for hidden figures [assets.]”
Pitches to investors typically included a sense of urgency and exclusivity. Most were told there was only one spot left for the $25,000 investment requested, according to Butler and court filings.
It turns out there were some last chances.
Butters said his investigation, which included calls to other investors, supported his belief in Grubbs.
“He said, ‘Oh yeah. [Grubbs] He gave me my money back. He gave me 12 percent interest. That’s very nice.’ He paid some people,” Butler said.
Some suspect it was a pyramid scheme in which Mr. Grubbs continued to pay investors as long as he could persuade others to fund the bottom of the pyramid.
Skepticism turned to suspicion on a Facebook page set up by Florida resident Terry Siebert.
Suddenly, several investors asked about money.
“He didn’t pay most of it,” Butler said.
Some of the majority pushed Grubbs into bankruptcy, even though Grubbs claimed he could have repaid everyone had Pickleball Rocks been allowed to continue operating.
“They should do something to make sure they don’t make more money for their creditors before they simply dissolve,” Grubbs said after the first hearing on the complaint. “Unfortunately, it was a missed opportunity.”
Grubbs did not respond to other requests for comment.
Butler said she no longer believes what Grubbs says, but she believes Grubbs still believes in her own optimism.
“Actually, he doesn’t think he did anything wrong,” Butler said. “I don’t understand what’s going on in his head.”
The court ordered Grubbs to release additional financial records related to five banks that are not parties to the complaint.
Butler said he hopes hidden assets will be discovered, but he also said it would be some comfort if the claims and losses of disgruntled investors served as a warning to other investors. added.
“What we’re really expecting is probably pennies on the dollar,” Butler said. “We lost a lot, but we won the fact that we won’t let anyone do this to him.”
Butler said some companies were hit harder by investments than others.
“Some people gave him their entire life savings and retirement savings,” Butler said. “I don’t see how they exist.”
