Pickleball Company Owner Waives Discharge of Over $47M in Unsecured Debt After USTP Investigation

A pickleball entrepreneur who was forced into bankruptcy by investors he lured with promises of generous returns recently agreed to waive his bankruptcy discharge after an investigation by the Justice Department’s U.S. Trustee Program (USTP), preventing the discharge of more than $47 million in unsecured debt.

On May 14, the Bankruptcy Court for the Southern District of Indiana approved a voluntary waiver of discharge by debtor Rodney Grubbs, owner of All About Pickleball LLC, an apparel and equipment company that did business as Pickleball Rocks. As a result, Grubbs remains personally liable for his debts, and creditors are free to pursue payment from him after the case is closed.

Grubbs solicited investments from pickleball players and fans from across the United States, usually in the form of promissory notes with purportedly guaranteed interest rates of 10 percent or higher. In December 2023, several unpaid investors filed an involuntary bankruptcy petition against Grubbs under chapter 7 of the Bankruptcy Code. Grubbs opposed the petition, but after a hearing in which he testified to using new investors’ funds to pay back previous investors, the bankruptcy court granted the involuntary petition and ordered the case to proceed. Grubbs eventually disclosed nearly $1.6 million in assets and more than $47 million in liabilities, the vast majority of them unsecured debts owed to hundreds of individuals.

As part of its extensive investigation, the USTP’s Indianapolis office obtained Grubbs’ personal and business financial records and examined him under oath. Ultimately, Grubbs — who also faced allegations from multiple creditors consistent with a Ponzi scheme — elected to waive his bankruptcy discharge.

“The USTP is committed to addressing fraudulent and abusive conduct that threatens the integrity of the bankruptcy system,” said U.S. Trustee Nancy J. Gargula for Region 10, which includes the Southern District of Indiana. “Our commitment to protecting consumers and those who fall victim to various schemes that come to light in bankruptcy is unwavering.”

The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders — debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.