Retired money manager Howard Rubin and a former personal assistant were arrested Friday on charges of sex trafficking and other counts over the course of a decade, federal prosecutors said.
Rubin was arrested this morning in Fairfield, Connecticut, and will be arraigned this afternoon in federal court in Brooklyn before U.S. Magistrate Judge Peggy Kuo.
Rubin’s former assistant Jennifer Powers was also arrested on sex trafficking and other charges. Powers was arrested in Texas this morning and is scheduled to make her initial appearance on Monday in federal court in the Northern District of Texas. She will be arraigned in the Eastern District of New York at a later date.
Between at least 2009 and 2019, Rubin ran an extensive network where he recruited women, often former Playboy models, to engage in sex in exchange for money, often relying on force, fraud, and coercion, prosecutors said.
Rubin and Powers are alleged to have spent more than $1 million of Rubin’s money funding the operation, prosecutors added.
The DOJ said in a statement that Rubin and Powers made the women who were involved sign non-disclosure agreements (NDAs) that required them “to assume the risk of the hazards and injury” in their encounters with Rubin. The NDAs also prohibited disclosure of the information about the encounters and mandated the payment of damages if they breached the contract.
Rubin is accused of using “the NDAs to threaten the women with legal consequences and public shaming if they sought legal recourse,” the Department of Justice (DOJ) said.
After the encounters, Rubin or Powers used his money to pay the women through a wire service or another online payment network such as PayPal or Venmo. Powers is accused of structuring the payments to avoid sending through a single transaction of $10,000 or greater, which would trigger reporting obligations via the bank, the DOJ said.
It’s not clear whether Rubin and Powers have attorneys or spokespersons who can speak on their behalf.