Indiana Secretary of State orders pickleball apparel CEO to halt alleged investment scheme

The Indiana Secretary of State’s securities division announced Friday it issued a cease and desist letter ordering a Brookville man who owns a pickleball apparel and equipment company to stop all activities regarding an alleged fraudulent investment scheme.

Rodney U. Grubbs is accused of using his company, All About Pickleball LLC., also known as Pickleball Rocks, to solicit investments in the form of high-interest promissory notes from investors, according to a statement from the Secretary of State’s office.

“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,” the statement said.

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Grubbs could not be reached for comment late Friday.

Similar to tennis, pickleball is one of the fastest-growing sports in the U.S. The game involves individuals or pairs of players hitting a small plastic ball with a paddle or racket over a net.  Pickleball courts and rackets are similar to but smaller than tennis courts and rackets.

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Alleged pickleball scheme

The securities division alleges Grubbs misrepresented the true size and nature of the investment opportunity he was offering, convincing multiple people that they would have one last slot to invest $25,000 in the company.

The Securities Division said the promissory notes Grubbs allegedly sold offered investors a 12% interest rate that compounded monthly and a provision to pay funders an 18% penalty in 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,” the division noted.

Many of Grubbs’ investors have not been repaid, according to the statement. Indiana law also requires people to register with the state in order to sell investments.

Grubbs is facing other legal troubles, including several lawsuits, and criticism on social media by slighted investors.

Indiana Secretary of State records show that All About Pickleball LLC was incorporated as a domestic limited liability company in 2013. The last business entity report it submitted to the state was filed in May.

According to its website, All About Pickleball LLC claims Pickleball Rocks is “the world’s most recognized pickleball apparel brand.”

“We have traveled the world playing in tournaments, vending at tournaments, conducting clinics, and preaching the pickleball gospel.  We have developed numerous programs to help people grow this great sport,” the website said.

Contact IndyStar investigative reporter Alexandria Burris at [email protected]. Follow her on X, formerly Twitter, at @allyburris.

This article originally appeared on Indianapolis Star: Indiana Secretary of State orders pickleball apparel CEO to halt alleged investment scheme