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Investors who lost money to an Indiana pickleball businessman will be able to take legal action to recover their losses following a bankruptcy court ruling that leaves the entrepreneur personally on the hook for more than $47 million in debt.
Rodney Grubbs, owner of All About Pickleball LLC — which operated under the name Pickleball Rocks — agreed to waive his right to a bankruptcy discharge of his debt earlier this month after a federal investigation by the U.S. Trustee Program. That means the hundreds of individuals who invested money with Grubbs are no longer barred from pursuing payment once the Chapter 7 bankruptcy case concludes.
The U.S. Bankruptcy Court for the Southern District of Indiana approved Grubbs’ waiver on May 14. Without a discharge, his personal liability for the debts remains intact. Individuals who invested with Grubbs will be able to file lawsuits or take other collection action in an attempt to recoup their funds.
Federal officials said Grubbs had solicited millions of dollars in investments from pickleball players and enthusiasts across the country, offering promissory notes with “guaranteed” interest rates of 10% or higher. But when many of those notes went unpaid, a group of investors forced him into bankruptcy in December 2023.
During a hearing in the bankruptcy case, Grubbs admitted under oath that he used new investors’ money to repay earlier ones, according to a news release from the U.S. Department of Justice. That’s the hallmark of a Ponzi scheme.
His financial disclosures revealed just under $1.6 million in assets against more than $47 million in unsecured liabilities owed to hundreds of individual creditors, according to the news release.
An investigation by the USTP’s Indianapolis office — which included subpoenas for business and personal records and multiple sworn examinations — preceded Grubbs’ decision to waive discharge.
“The USTP is committed to addressing fraudulent and abusive conduct that threatens the integrity of the bankruptcy system,” said Nancy J. Gargula, U.S. Trustee for Region 10. “Our commitment to protecting consumers and those who fall victim to various schemes that come to light in bankruptcy is unwavering.”
Although the bankruptcy case remains open, the waiver ruling effectively reopens the door for civil action.
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