Brooklyn, NY – Retired financier Howard Rubin, once a high-flying figure in New York’s investment world, was arrested Friday morning on charges of sex trafficking and bank fraud in connection with what prosecutors describe as a multimillion-dollar interstate trafficking network centered in a Midtown penthouse outfitted as a sex “dungeon.”
Federal prosecutors unsealed a 10-count indictment charging Rubin, 66, and his longtime personal assistant, Jennifer Powers, with recruiting and transporting women across state lines to engage in commercial sex acts. Rubin, who was taken into custody at his Fairfield, Connecticut home, is set to be arraigned in Brooklyn federal court. Powers, arrested in Texas, will make her first court appearance Monday in Dallas before being transferred to New York.
According to U.S. Attorney Joseph Nocella Jr., Rubin allegedly used his wealth and influence to lure women under the guise of consensual encounters, only to exceed agreed boundaries and subject them to violent abuse. “Human beings are not chattel to be exploited for sex and sadistically abused,” Nocella said.
Alleged operation
Prosecutors say Rubin and Powers spent more than $1 million operating what they describe as a commercial sexual torture network. Women were flown to New York, often arriving at LaGuardia or JFK before being transported to Rubin’s penthouse. There, one bedroom was converted into a soundproof red-painted chamber stocked with BDSM devices, including an electric shocking machine.
Powers allegedly handled logistics, booking flights and arranging payments through wire transfers, PayPal, or Venmo. At times, she allegedly broke up transactions to avoid bank reporting thresholds. Prosecutors also claim Rubin forced victims to sign restrictive non-disclosure agreements threatening legal and financial retaliation if they spoke out.
Fraud allegations
Beyond sex trafficking, Rubin faces a separate charge of bank fraud. Prosecutors allege he misled a bank about pending civil litigation against him in order to secure financing for a Texas home purchased by Powers and her husband.
The indictment covers a period between 2009 and 2019 and alleges incidents in both New York and Las Vegas. Victims reportedly suffered lasting injuries, both physical and psychological.
If convicted, Rubin and Powers face mandatory minimums of 15 years and possible life sentences. Rubin’s bank fraud charge carries a maximum penalty of 30 years.
Federal authorities urged anyone with information to contact the FBI through a dedicated victim hotline and email.
Key Points
- Howard Rubin, former Wall Street financier, indicted in Brooklyn on sex trafficking and bank fraud charges.
- Prosecutors say Rubin and assistant Jennifer Powers spent over $1 million operating a trafficking network centered in a Midtown Manhattan sex “dungeon.”
- Rubin faces a possible life sentence if convicted, along with 30 years on separate bank fraud charges.
