Federal agents arrested famed money manager Howard Rubin and his former personal assistant on sex trafficking charges tied to abusive encounters with women.
Agents took Rubin, 70, into custody Friday at his home in Fairfield, Connecticut. Prosecutors alleged he trafficked women, transported them across state lines for commercial sex acts, and brutalized them in encounters that went beyond consent.
Rubin, a former Soros Fund manager, was arrested on a 10-count indictment alleging he “often target[ed] former Playboy models” to “engage in commercial sex acts.” He managed a Mortgage-Backed Securities Fund for Soros Fund Management LLC in 2008 and left the firm in 2015, according to the Independent.
Rubin pleaded not guilty during his appearance in Brooklyn federal court, which a medical incident delayed. Magistrate Judge Peggy Kuo ordered him held without bail after prosecutors argued he posed a flight risk and had discussed hiring a “hit man to target women who had filed a civil suit against him,” according to CNBC.
Prosecutors said Rubin once held more than $74 million in a Cayman Islands account. They argued that his overseas assets, history of witness intimidation, and the victims’ fear justified detention. They also said he possessed eight cell phones, three BlackBerry devices, and refused to surrender his passport.
“During many such encounters, Rubin engaged in conduct beyond the scope of the women’s consent,” the indictment alleged. “During many of these encounters, Rubin brutalized women’s bodies, causing them to fear for their safety and/or resulting in significant pain or injuries.”
The indictment said Rubin converted a Manhattan penthouse into a soundproofed “sex dungeon” with bondage and sadomasochism equipment. Prosecutors alleged it included a device designed to “shock or electrocute women.” They also alleged that Rubin and assistant Jennifer Powers spent at least $1 million maintaining the operation from 2009 through 2019.
Agents arrested Powers, 45, at her home in Southlake, Texas. She faces additional charges of bank fraud linked to her home mortgage. Prosecutors want a “substantial bail package” for her.
Brooklyn U.S. Attorney Joseph Nocella said in a statement, “As alleged, the defendants used Rubin’s wealth to mislead and recruit women to engage in commercial sex acts, where Rubin then tortured women beyond their consent, causing lasting physical and/or psychological pain.”
“Today’s arrests show that no one who engages in sex trafficking … is above the law,” Nocella added.
If convicted, Rubin and Powers face a mandatory minimum sentence of 15 years and up to life in prison.