Secretary of State Securities Division files action against company targeting pickleball competitors

secretary-of-state-securities-division-files-action-against-company-targeting-pickleball-competitors

Indiana Secretary of State Diego Morales announced that the Indiana Securities Division has issued a Cease and Desist to stop an alleged fraudulent investment scheme concerning a Pickleball apparel and equipment company All About Pickleball LLC. also known as “PICKLEBALL ROCKS.” 

The petition alleges that Rodney U. Grubbs of Brookville, personally and through his companies, solicited investments in the form of promissory notes from investors. The notes Grubbs is alleged to have sold 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. Many of Grubbs’ investors have not been repaid.

The Indiana Uniform Securities Act requires most people selling investments to be registered to do so. Indiana Secretary of State Diego Morales reminds Hoosier investors to remain vigilant when making investments and to utilize resources on the Indiana Securities Division website to research whether the security or the person offering to sell securities are properly registered.

“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. These duties exist to protect Hoosier investors and ensure transparency in securities transactions,” said Indiana Secretary of State Diego Morales.

Information about registrations can be found on the Indiana Secretary of State, Securities Division’s website at https://securities.sos.in.gov/, under the registrations tab.