Lured Multiple Women Over Five Years
Inflicted Harm Through Bondage and Sadistic Acts
Howard Rubin, a former star investor on Wall Street in the 1980s, was arrested on September 26 (local time) on charges of human trafficking at the age of 70.
According to the New York Times on the same day, Rubin is accused of converting a room in the penthouse of the Metropolitan Tower in central Manhattan into a "prison," where he lured multiple female victims and engaged in violent sexual acts. This room, which was painted red, was reportedly soundproofed.
From 2009 to 2019, Rubin, along with his personal assistant Jennifer Powers, 45, recruited at least six women, paying them and coercing them into bondage, sadistic, and masochistic acts. Prosecutors stated that Rubin’s actions went far beyond what the women had consented to, and alleged that not only violence and restraint but also electric shocks were used. The victims were reportedly financially vulnerable or had histories of addiction and abuse, and Rubin’s team exploited these circumstances to lure them. Rubin and Powers forced the victims to sign non-disclosure agreements, threatening legal action or other disadvantages if they failed to comply. The contracts stipulated that the women would assume all risks, that Rubin would not provide drugs or alcohol, and that the sexual acts would not be disclosed. If the contract was breached, the women were required to pay $500,000 (about 700 million won).
Prosecutors noted that while the contracts allowed the women to use a "safe word" to stop any sexual activity, in reality, the women were gagged or Rubin ignored their pleas, according to the indictment. There were also instances where Rubin provided the women with large quantities of drugs and alcohol, causing them to lose consciousness before he sexually assaulted them.
Rubin was arrested in Connecticut on this day, while Powers was arrested in Texas. In addition to human trafficking, Rubin has been charged with bank fraud and interstate transportation for prostitution, and could face up to life in prison if convicted.
Prosecutors stated that Rubin and Powers spent at least $1 million (about 1.4 billion won) on these crimes from 2009 to 2019. The monthly rent for the penthouse was $18,000 (about 25.4 million won). Previously, Rubin and Powers were sued in a civil case by the victims in 2017 and were ordered to pay $3.9 million (about 5.5 billion won) in damages in 2022.
Federal prosecutor Tara McGrath said, "There are dozens more victims whose names do not appear in the indictment," and added, "Rubin continued to buy sex even after being sued in 2017." She also noted that Rubin poses a flight risk from the United States, given that he holds $74.4 million (about 10.41 billion won) in a Cayman Islands bank account.
Rubin joined Salomon Brothers in 1982 and became well known after being featured as a key figure in Michael Lewis’s 1989 book about Salomon Brothers, "Liar’s Poker." Rubin later joined Merrill Lynch in 1985 for a higher salary. However, in 1987, he left a stain on his career by making an investment at Merrill Lynch that resulted in a loss of $250 million (currently valued at $700 million, or more than 987 billion won), which was the largest loss reported by a Wall Street financial firm at the time. Rubin later worked as a fund manager at Bear Stearns and Soros Fund Management.
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