Chants Of "Rudy, Rudy!" Not So Inspirational In Ruettiger's SEC Stock Fraud Case

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.

Football underdog “Rudy” sacked for stock fraud [Reuters]