The pickleball community all over the country was left shaken, as the FBI served a search warrant at the home of Rodney Grubbs. Grubbs is the former owner of Pickeball Rocks or "All About Pickleball LLC".
According to federal bankruptcy court documents, investors are accusing Grubbs are scamming them out of millions. Some of those investors are from here in Arizona.
"It's just something that brings you together, and Rodney was there doing that," said Doug Smook.
Smook lives in South Dakota, but spends the winter here in Arizona. He is the tournament director for the Happy Trails Pickleball Club in Surprise. Smook told ABC15 that's how he met Grubbs a few years ago.
Currently, Smook said he is one of the investors who has not received their money back despite asking.
"I invested $15,000 and the promissory note was for a 14% interest over the year," said Smook.
He said in 2023, he discovered others posting about investing on social media. Smook then said he reached out to Grubbs.
"Well I sent an email to Rodney and said, look, I'm just calling my note," said Smook. "Just FYI, let me know. And it was radio silence, so never had any additional contact with Rodney."
Attorney Matthew Foster, practicing in Indiana, says he learned about Grubbs in August 2023.
"I now have over 250 clients," said Foster. "I think it's a little less than that that I actually filed claims for. But there are hundreds of people that have been victimized."
Federal bankruptcy court documents allege hundreds invested with Grubbs in the form of promissory notes through his pickleball company or an alleged real estate business dating back to the early 2000's.
"I don't think that I ever felt that I was investing in Rodney," said Smook. "I was investing in pickleball, the sport of pickleball."
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Multiple Arizonans all shared similar stories, many meeting Grubbs at a tournament. They described him as well-known and a trustworthy friend. A few said his pitch was focused on growing the sport.
"People will tell you over and over and over, very folksy, very charming," said Foster.
Even to this day, Foster told ABC15 he believes there may be investors that haven't come forward, including here in Arizona. Foster said Grubbs' pitch included asking people not to tell others. The attorney alleges the former Pickleball Rocks owner frequently told investors this was some sort of an exclusive opportunity.
Foster said he had been pushing law enforcement to get involved for months.
As Grubbs deals with legal issues in civil court, this week ABC15's sister station WCPO was there as the FBI served a search warrant on his Indiana home.
They reported that in January, Indiana Secretary of State Diego Morales issued a cease and desist order to Grubbs "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 Grubbs solicited investments in the form of promissory notes from investors that "contained a high interest rate of 12% compounded monthly and contained an 18% penalty provision in the case of default."
Wednesday the FBI did not tell WCPO if Grubbs was facing criminal charges. Court documents show he has denied fraud allegations in the past.
Foster advises that people wanting to invest money ask for something in writing that shows what the investment is for.
"Get something in writing and get somebody else to look at it," said Foster. "Take it to a professional that you know, a CPA or a lawyer."
For now he's urging people to take action if they invested with Grubbs.
"Go to the FBI, call the FBI, or alternatively, the IRS," said Foster. "If there is a state law enforcement agency there, such as the AG, they should file that complaint."
The FBI sent out an alert asking for people who invested with Pickleball Rocks to fill out an online form.
The FBI’s Indianapolis Division is seeking to identify potential victims who invested with Rodney Grubbs, the former owner of Pickleball Rocks.
— FBI Indianapolis (@FBIIndianapolis) December 4, 2024
Please visit https://t.co/XvWnr0AOKn for additional information and a link to a short form.
But people like Smook want to know one thing.
"Rodney, where's the money at?"
After speaking to the FBI Thursday, ABC15 is reaching out to the US Attorney General's office.
Online, the FBI has information on how to protect yourself from investing and possible schemes.
