by Brian Mahany
Daniel “Rudy” Ruettiger, a former Notre Dame football legend, may not be as well known as Penn State’s Joe Paterno but both men have brought discredit to their respective schools. Ruettiger just agreed to pay almost $400,000 to settle investment fraud allegations brought by the SEC.
Regulators say that Ruettiger defraud investors by artificially pumping the value of stock in his sports drink company, Rudy Nutrition. They say he lied about taste test results and sales figures. Many people purchased stock in Rudy’s company based on Rudy’s reputation and on the false sales data.
Rudy’s company told investors that it was outselling Gatorade in the Southwest by a 2-to-1 margin. Not true says the feds. “Investors were lured into the scheme by Mr. Ruettiger’s well known, feel good story but found themselves in a situation that did not have a happy ending,” according to an SEC spokesperson.
The case has now reportedly been settled for $382,000. Although that amount sounds like a lot of money, prosecutors say the pumping scheme generated $11 million in fraudulent profits.
Stockbrokers, investment advisers and financial planners must not make false statements about the value of securities and investments nor may they mislead their clients. Fabricated taste tests and false sales data are strictly forbidden. If you bought stocks or mutual funds or even insurance based on misleading information, you may have a claim.
Misleading investors, recommending unsuitable investments and selling stocks and exotic derivative securities solely to earn a higher commission are all examples of illegal behavior.
For more information, contact attorney Brian Mahany at (414) 704-6731 (direct) or by email at . Our investment fraud and asset recovery lawyers have helped many people get back their hard earned money. Many of these cases can be handled quickly by arbitration and with no legal fees unless you win.
Mahany & Ertl – America’s Fraud Lawyers. Offices in Milwaukee, Wisconsin; Detroit, Michigan & Portland, Maine. Services available in most jurisdictions.