Florida pickleball players snared in alleged scheme with sport ‘ambassador’ who owes millions
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, said many investors considered Grubbs to be their friend.
“We trusted Rodney Grubbs 100 percent,” Butler said. “He was a very trusted friend.”
Grubbs, at one time dubbed “pickleball’s ultimate ambassador,” is 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 he 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.”
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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 8 On Your Side year 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 said he cannot afford an attorney. In his filing, he pegged his assets at $950,000 that included $800,000 in rental property and $150,000 in Pickleball Rocks merchandise.
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Grubbs also told the court there are “no less than 250 outstanding lenders who would participate in the distribution of proceeds.”
Grubbs asked the judge to allow him to stay business under Chapter 11, insisting the upside of pickleball’s growth would help him pay his debts.
“With a good management team,” Grubbs stated. “Pickleball Rocks can and will continue to grow.”
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?”
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