Order issued by Indiana Secretary of State's Office
(BROOKVILLE, Ind.) – A Brookville-based pickleball apparel and equipment company has received a cease and desist order from the Securities Division of the Indiana Secretary of State’s office.
All About Pickleball LLC, also known as “Pickleball Rocks” is accused of operating a fraudulent investment scheme.
The petition alleges that Rodney Grubbs, of Brookville, personally and through his companies, solicited investments in the form of promissory notes from investors.
According to state officials, Grubbs is alleged to have sold notes that contained a high-interest rate of 12% compounded monthly and contained an 18% penalty provision in the case of default.
As part of the scheme, Grubbs is alleged to have encouraged investors to roll over the investment into a new one, thereby avoiding default and avoiding paying any of the investors their returns.
“Grubbs used pickleball tournaments to meet and solicit investors and told them at the time the money they invested would be used to grow his company by allowing him to buy more inventory. Grubbs allegedly told multiple investors that the slot was the last available one, thereby misrepresenting the size and true nature of the investment opportunity.” state investigators said.
Many of Grubbs’ investors have not been repaid, according to the order.
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