Key Takeaways
- Howard Rubin, a former Wall Street star trader, was arrested in 2023 on sex trafficking charges.
- Allegations against Rubin, dating back to 2009, include operating a 'sex dungeon' in his Manhattan penthouse.
- Rubin faced civil lawsuits in 2017, leading to a $3.8 million judgment against him.
- An associate, Jennifer Powers, is accused of recruiting women and facilitating encounters.
Deep Dive
- Howard Rubin, a notable Wall Street trader from the 1980s and '90s, was arrested in 2017 on sex trafficking charges.
- Rubin, known for significant risk-taking, pleaded not guilty to the allegations.
- A Wall Street Journal story prompted reporter Erich Schwartzel to investigate Rubin's past.
- In April 1987, Howard Rubin caused a $250 million loss at Merrill Lynch due to a poorly hedged investment in mortgage securities.
- This event resulted in his public infamy and a nine-month suspension from the securities industry by the SEC.
- Despite the significant loss and suspension, Rubin was hired by Bear Stearns later in 1987.
- Allegations of Howard Rubin's abuse surfaced in 2017 with civil lawsuits, with investigations tracing alleged sex abuse back to 2009.
- Women, often models or waitresses, some with Playboy ties, were allegedly recruited by Jennifer Powers and offered $2,000 to $5,000 per encounter.
- Rubin's Manhattan penthouse apartment in the Metropolitan Tower contained a soundproofed, red-painted room outfitted as a 'sex dungeon' with ropes, whips, and sex toys.
- Victims described Rubin's behavior in the dungeon as shifting from normal to aggressive, involving punching, slapping, and torture, with safe words allegedly ignored.
- Women accusing Rubin of rape were allegedly required to sign non-disclosure agreements with a $500,000 penalty for breach.
- Rubin's defense cited these NDAs as proof of consent for hazardous sexual acts, allegedly signed while women were inebriated.
- An altercation between two women at Rubin's apartment in 2016, allegedly over being misled, led to police involvement and prompted women to compare stories.
- Following a collective lawsuit in 2017, Rubin and Jennifer Powers hired multiple attorneys to aggressively counter claims, arguing consent.
- Rubin was found liable in a civil case, ordered to pay $3.8 million to six women, and a second case also settled.
- He was arrested in September 2023, eight years after the first lawsuit, and was denied bail by a judge, facing potential life imprisonment.
- The narrative contrasts Rubin's former 'master of the universe' status with his current detention, despite his wife and daughter defending him.