With all the businesses cropping up around pickleball, it was only a matter of time until something fishy went down.
Rodney Grubbs, proprietor of the Indiana company All About Pickleball LLC., (aka “PICKLEBALL ROCKS"), reportedly found a way to scam people out of investment in his company. The company specializes in selling equipment and apparel for the sport.
The Indiana Securities Division of the Indiana Secretary of State’s office have issued a cease and desist order against Grubbs for an "alleged fraudulent investment scheme," according to a local Fox 59 report.
Grubbs reportedly solicited promissory notes from investors containing a 12% interest rate and an 18% penalty provision if the note defaulted.
“In most securities transactions, the duty is on the seller of the security to make all the proper disclosures to the buyer regarding the investment. To do otherwise can lead to criminal or civil violations of Indiana Law.”
According to the Secretary of State office's press release, Grubbs also used pickleball tournaments to meet and solicit investors.
"[He] told them at the time the money they invested would be used to grow his company by allowing him to buy more inventory," the release says.
"Grubbs allegedly told multiple investors that the slot was the last available one, thereby misrepresenting the size and true nature of the investment opportunity. Many of Grubbs’ investors have not been repaid."
More fascinating details
What's even more intriguing is that less than a week before the cease and desist was issued, Grubbs (what a name, by the way!) posted on his personal LinkedIn account asking for advice in selling a pickleball business:
I'm sure Grubbs wishes he sold it sooner.
We've found another compelling detail about Grubbs and his business:
- A number of posts calling Grubbs' legitimacy into question on the Pickleball Forum Facebook group have been "taken down," according different sources like this episode of King of the Court
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