On September 26, 2025, the world of high finance was rocked by the arrest of Howard Rubin, a once-prominent investment banker whose Wall Street career spanned decades and whose reputation had long been dogged by controversy. Federal agents apprehended the 70-year-old at his home in Fairfield, Connecticut, charging him with sex trafficking, transportation for the purposes of prostitution, and bank fraud. Rubin's former personal assistant, Jennifer Powers, 45, was arrested the same day in Southlake, Texas. The arrests followed a years-long investigation into a sprawling trafficking network that, prosecutors allege, spanned at least a decade and left a trail of traumatized victims across the country.
According to the U.S. Attorney's Office for the Eastern District of New York, Rubin and Powers orchestrated a scheme from at least 2009 through 2019, recruiting dozens of women—some of them former Playboy models—via social media and modeling websites. These women were allegedly lured to luxury hotels and a Manhattan penthouse, where they were subjected to commercial sex acts involving bondage, discipline, dominance, submission, and sadomasochism. The indictment, unsealed in Brooklyn federal court, paints a harrowing picture: a bedroom in Rubin's Central Park-adjacent penthouse was converted into a soundproof "sex dungeon," painted red, equipped with BDSM restraints, and even devices designed to shock or electrocute the women.
Prosecutors allege that Rubin, leveraging his wealth and status as a former top manager at Soros Fund Management, Bear Stearns, and Salomon Brothers, spent over $1 million financing this enterprise. FBI Assistant Director in Charge Christopher Raia stated, "For many years, Howard Rubin and Jennifer Powers allegedly spent at least one million dollars to finance the commercial sexual torture of multiple women via a national trafficking network. The defendants allegedly exploited Rubin’s status to ensnare their prospective victims and forced them to endure unthinkable physical trauma before silencing any outcries with threats of legal recourse."
The indictment details that Rubin and Powers required women to sign non-disclosure agreements (NDAs) before any encounters, which purported to make the women assume the risks of injury, prohibit them from speaking out, and threaten damages for breaches. Prosecutors say these NDAs were kept in a safe in the penthouse, and that women were often required to sign while under the influence of alcohol or sedatives—substances allegedly provided by Rubin, Powers, or their associates.
The charges go far beyond consensual adult activity. The indictment alleges that Rubin routinely ignored "safe words"—the verbal signal women were told would stop the violent conduct—and, in many cases, the women were bound, gagged, or rendered unconscious, making it impossible for them to withdraw consent. "During many such encounters, Rubin engaged in conduct beyond the scope of the women's consent," the indictment notes. Women suffered significant injuries, sometimes requiring medical attention, and lived in fear of further harm or public shaming.
Assistant U.S. Attorney Joseph Nocella did not mince words: "Today's arrests show that no one who engages in sex trafficking, in this case in luxury hotels and a penthouse apartment that featured a so-called sex 'dungeon,' is above the law, and that they will be brought to justice. Human beings are not chattel to be exploited for sex and sadistically abused, and anyone who thinks otherwise can expect to find themselves in handcuffs and facing federal prosecution like these defendants."
Jennifer Powers, according to the indictment, played a key role in the operation. She allegedly arranged travel for the women, ensured NDAs were signed, managed payments, and handled the fallout from complaints about Rubin's violence. Powers also faces bank fraud charges, accused of making misrepresentations to a bank while financing her Southlake, Texas, home, with funds allegedly provided by Rubin.
The financial scope of the operation was significant. Prosecutors say women were paid $5,000 per encounter if Rubin was "satisfied," and less if he was not. Payments were reportedly made via wire transfers, PayPal, or Venmo, sometimes structured to avoid triggering banking regulations. During Rubin's arrest, agents found eight cellphones and three BlackBerry devices, and prosecutors cited his "extraordinary wealth," some held in offshore accounts, as a reason for denying bail.
Rubin's legal team argued for his release, citing his health—he reportedly suffered a stroke in July 2025—and family ties in the area. But the federal magistrate was unmoved, ultimately denying a proposed $25 million bond. The court cited Rubin's wealth, overseas accounts, and what prosecutors described as prior attempts at witness intimidation, including an alleged discussion about hiring a hitman to target women who had filed civil suits against him. The judge also noted that victims were "universally" afraid of Rubin and that no conditions could adequately ensure community safety or his appearance in court.
The case is not Rubin's first brush with legal trouble. In 2017, several women—including Playboy models—filed a civil suit alleging beatings, sexual abuse, and rape. In 2022, a Brooklyn federal jury found Rubin liable for sex trafficking six women, awarding them $3.85 million in damages. Powers was not found liable in that civil case. Rubin is currently appealing the judgment.
Rubin's notoriety stretches back to his Wall Street days. He first made headlines in 1987 for unauthorized trades at Merrill Lynch, which reportedly contributed to a $250 million loss for the firm and led to his dismissal. His exploits were chronicled in Michael Lewis' best-selling memoir, Liar's Poker, cementing his place in Wall Street lore. Over the years, Rubin also held high-ranking positions at Bear Stearns and Soros Fund Management, making him a fixture in the upper echelons of finance.
If convicted of sex trafficking, Rubin and Powers each face a mandatory minimum of 15 years and up to life in prison. The bank fraud charge carries a maximum sentence of 30 years. Neither Rubin nor Powers' attorneys have commented publicly on the charges. Powers is scheduled to appear in court in Texas, while Rubin's next court date is set for October 20, 2025.
Federal officials believe there may be additional victims and have urged anyone with information to contact the FBI. As the case unfolds, it serves as a stark reminder that wealth and status offer no immunity from the law, and that the pursuit of justice can, at times, take years to bear fruit.
