"Rudy" inspiration charged with securities fraud

Reuters News
|
Posted: Dec 19, 2011 3:39 AM
"Rudy" inspiration charged with securities fraud

(Reuters) - U.S. securities regulators on Friday charged Daniel Ruettiger -- the inspiration behind the 1993 movie "Rudy" -- and 12 others with running a scheme to deceive investors into buying stock in Ruettiger's sports drink company.

Rudy Nutrition, which is no longer in business, provided false and misleading statements about the company to investors, the Securities and Exchange Commission said.

The scheme generated more than $11 million in illicit profits, the SEC said.

"Investors were lured into the scheme by Mr. Ruettiger's well-known, feel-good story but found themselves in a situation that did not have a happy ending," SEC enforcement lawyer Scott Friestad said in a statement.

Ruettiger and 10 of the scheme's other participants have agreed to settle the SEC's charges without admitting or denying the allegations. Ruettiger agreed to pay $382,866 to settle the case.

An attorney for Ruettiger could not immediately be reached for comment.

(Reporting By Aruna Viswanatha; Editing by Gerald E. McCormick)