Knocked Off the Pedestal: Daniel "Rudy" Ruettiger Charged With Securities Fraud

Do you remember the movie, Rudy starring future Hobbit, Sean Austin? I still watch it all the time, it was an inspiring story and a nice piece of film-making. It also had the virtue of being based on the real experience of a walk-on football player at Notre Dame who eventually got to dress and even play in his final game as a senior. Very heart-warming and uplifting film, sending the message that determination and hard work can overcome all odds.

Unfortunately, the real-life Daniel "Rudy" Ruettiger is in deep trouble with the federal authorities, namely the Securities and Exchange Commission, for allegedly engaging in a scheme to "pump and dump" the stock in a company he created to compete with Gatorade and other sports drinks manufacturers. The SEC alleges that Ruettiger and his co-conspirators used Rudy's inspirational story to lure investors to purchase almost a billion shares of the company stock as part of an illegal stock fraud scheme.

Ruettiger and ten of his co-defendants pleaded the equivalent of nolo contendre to the charges, and settled with the SEC without admitting guilt in the scheme. Ruettiger paid $382,866 to settle the charges, along with effectively being banned from serving as an officer or director in a public company and offering or participating in the offering of penny stocks.