Daniel "Rudy" Ruettiger might have become part of Notre Dame folklore as the walk-on football player who inspired a team, but the legacy he ultimately leaves might be that of a scammer.
According to the Securities & Exchange Commission, Ruettiger ran a pump-and-dump scheme that enticed investors to bid up the stock of his sports drink company, Rudy Nutrition. Although Ruettiger did not admit or deny guilt, he did pay $382,866 to resolve the SEC's allegations.
According to the SEC complaint filed in federal court in Las Vegas, Reuttiger's company sold only a small amount of a sports drink called "Rudy" and instead the company served as a vehicle for a 2008 pump-and-dump scheme that generated $11 million in illicit profits. The SEC revoked registration of the stock of Rudy Nutrition in 2008.
"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," said Scott Friestad, associate dir...