Howard Rubin, a name once synonymous with Wall Street success and high-society philanthropy, now stands at the center of a sweeping federal sex trafficking case that has rocked financial and social circles from Manhattan to Texas. Rubin, a retired financier known for his roles at Salomon Brothers and Soros Fund Management, was arrested in Fairfield, Connecticut, on the morning of September 26, 2025, according to the U.S. Attorney’s Office for the Eastern District of New York. Alongside him, his longtime personal assistant, Jennifer Powers, was taken into custody in Texas the same day. Both face a raft of federal charges including sex trafficking, transporting women across state lines for commercial sex acts, and, in Rubin’s case, bank fraud.
The charges stem from what prosecutors describe as a decade-long criminal enterprise that lured women from across the United States to Rubin’s luxury Manhattan penthouse. There, according to court documents and statements from federal officials, women were subjected to sexual activities involving force, fraud, and coercion—far beyond the boundaries of consent. Rubin and Powers allegedly spent more than $1 million to finance the operation, which included a "soundproof sex room" filled with BDSM equipment, including a device used to shock women, as reported by WFSB and FOX61 News.
Rubin’s career trajectory had been the stuff of legend. Born in Massachusetts to a Polaroid researcher, he graduated from Lafayette College with a degree in chemical engineering before earning his MBA from Harvard Business School. He made his mark as a bond trader at Salomon Brothers starting in 1983, later joining Soros Fund Management, the investment firm founded by billionaire George Soros. Rubin’s Wall Street exploits were chronicled in bestselling books such as Liar’s Poker and The Big Short. He married fellow Wall Street professional Mary Henry in 1985, and the couple became fixtures in Manhattan’s social scene, supporting charities and maintaining a multimillion-dollar property portfolio. Their marriage ended in divorce in July 2021, after 36 years and three children.
But beneath the veneer of financial acumen and social respectability, federal prosecutors allege Rubin orchestrated a sophisticated and deeply abusive sex trafficking scheme. The indictment unsealed in Brooklyn federal court details how, between 2009 and 2019, Rubin and Powers recruited women—including former Playboy models—under false pretenses, transporting them to New York for what was described as consensual BDSM encounters. Once there, according to the U.S. Attorney’s Office, the women were subjected to acts that far exceeded what had been agreed upon, resulting in both emotional and physical injuries.
Joseph Nocella, Jr., the U.S. Attorney for the Eastern District of New York, 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." He emphasized the gravity of the alleged acts, stating, "Human beings are not chattel to be exploited for sex and sadistically abused."
Assistant Director in Charge Christopher Raia of the FBI echoed the sentiment, highlighting the calculated nature of the alleged crimes. "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," Raia said, as reported by FOX61 News. "The FBI will continue to apprehend any trafficker who sexually abuses others for twisted gratification."
The operation’s logistics were allegedly managed by Powers, who began working as Rubin’s assistant around 2011. Prosecutors say she arranged travel for the women, booking flights to New York’s LaGuardia or JFK airports and transporting them to the Midtown penthouse. There, a bedroom had been converted into a red-walled, soundproofed "sex dungeon" equipped with restraints and devices for inflicting pain. Harry Chavis, Jr., special agent in charge for the IRS Criminal Investigation division, noted, "While Rubin dehumanized these women with abhorrent sexual acts, Powers is alleged to have run the day-to-day operations of the enterprise and got paid generously for her efforts."
The financial details are as disturbing as the allegations themselves. Rubin and Powers are accused of using more than $1 million to fund the trafficking network, paying women via wire transfers or digital services like Venmo and PayPal. Sometimes, payments were deliberately structured to avoid triggering federal banking reporting requirements for transactions exceeding $10,000. After each encounter, women were required to sign non-disclosure agreements that threatened legal action and public shaming if they spoke out—an alleged tactic to silence victims and prevent them from seeking help.
One particularly harrowing incident cited in the indictment involves Rubin allegedly using force, fraud, and coercion to traffic a woman in Las Vegas in 2018. The legal case also includes a bank fraud charge: while embroiled in civil litigation related to his alleged sexual conduct, Rubin is accused of falsely telling a bank he was not a party to any litigation in order to secure a mortgage for Powers’ Texas home, which he financed.
This federal indictment marks an escalation from Rubin’s previous legal troubles. In late 2017, he faced multiple civil lawsuits from women who accused him of abuse at the Midtown Manhattan location. Those lawsuits described a BDSM-themed apartment equipped with restraints and devices, where Rubin allegedly assaulted women and exceeded the boundaries of any agreement. At the time, Rubin denied the allegations. Now, federal prosecutors allege the criminal enterprise was systematic, spanning a decade and involving the recruitment and coercion of multiple women through fraudulent means.
If convicted, the consequences for Rubin and Powers are severe. The sex trafficking charges alone carry a mandatory minimum sentence of 15 years and a maximum of life imprisonment. Transporting women for commercial sex acts could add up to 10 years for each count. Rubin’s bank fraud charge carries a potential 30-year sentence. As prosecutors emphasized, the charges remain allegations and both defendants are presumed innocent unless and until proven guilty.
Rubin’s arrest represents a stunning fall from grace for a man once celebrated for his financial prowess and charitable giving. The contrast between his public persona as a respected executive and philanthropist and the lurid details emerging from the federal indictment is stark. As the case proceeds through the court system, it stands as a sobering reminder that even the most powerful and privileged are not immune from legal accountability.
The next steps for Rubin and Powers are arraignments and a lengthy legal battle. For the women who have come forward, the federal case offers a chance for their voices to be heard in a system that, as prosecutors insist, is determined to hold all traffickers accountable—regardless of their wealth or status.
