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Rodney Grubbs agreed to waive his right to bankruptcy discharge, the Department of Justice announced on Wednesday, June 11. Grubbs was the owner of Indiana-based All About Pickleball LLC, also known as Pickleball Rocks.
Creditors can continue to go after him for repayment, even after his bankruptcy case is closed.
"The USTP is committed to addressing fraudulent and abusive conduct that threatens the integrity of the bankruptcy system," said Nancy Gargula of the DOJ's U.S. Trustee Program. "Our commitment to protecting consumers and those who fall victim to various schemes that come to light in bankruptcy is unwavering."
Grubbs raised millions from pickleball players and fans across the US, mostly through promissory notes that promised interest rates of 10% or more. When those debts went unpaid, a group of investors filed for involuntary bankruptcy against him in December 2023.
Grubbs initially fought the filing, but later admitted to using money from new investors to pay back earlier ones – a classic red flag in Ponzi fraud cases. A judge ruled the bankruptcy case could proceed.
Grubbs also disclosed about $1.6 million in assets and more than $47 million in liabilities, mostly unsecured debt owed to hundreds of investors.
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