Daniel Ruettiger, aka Notre Dame football folk hero immortalized in the movie Rudy, apprently didn’t want to be the underdog any more. So he tried to make a go against Gatorade with Rudy Nutrition in the sports drink market, only to get busted by the SEC for allegedly running a stock scam.
The Securities and Exchange Commission charged Ruettiger and 12 others in the scam involving the company (its tagline: Dream Big! Never Quit!), saying that it was all a front for a stock scheme that netted more than $11 million in ill-gotten gains, Reuters reports.
The SEC said Rudy Nutrition claimed things that weren’t true to appease investors. Things like, “Rudy outsould Gatorade 2 to 1!” in major regional tests as well as blind taste tests.
Rudy — pardon, Ruettiger, has agreed to pay $382,866 to settle the case, without admitting or denying the charges.
“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.