The SEC charged that Mr. Ruettiger and 12 others participated in a scheme to provide false and misleading statements about their company in news releases, SEC filings and promotional materials. The false and misleading statements, which included exaggerated claims about their "Rudy" sports drink, were designed to boost the price of the company's stock and allow the participants to sell their shares at inflated prices, the SEC said.Mr. Ruettiger agreed to pay $382,866 to settle the SEC's charges, along with 10 others who agreed to settle, the SEC said. The agency is still pursuing litigation against two other individuals
"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 Director of the SEC's Division of Enforcement. "The tall tales in this elaborate scheme included phony taste tests and other false information that was used to convince investors they were investing in something special."
For example, a promotional mailer to potential investors falsely said that in "a major southwest test, Rudy outsold Gatorade 2 to 1!" the SEC said. The false or misleading statements about the company were also distributed in messages posted in Internet chat rooms dedicated to penny stocks and videos placed on the Internet for public viewing.
Rudy just wanted it so badly. His sports drink was such an underdog to Gatorade, and if Rudy Nutrition could survive, it'd give hope to all other small business owners with long-shot odds on playing with the big boys. Well, now Rudy's in the shitter. This isn't a very juicy story, but it's about Rudy and people who are obsessed with Rudy annoy me when they say he's never done anything wrong. His story's great and inspirational (if not corny), but he's not perfect. Tebow is the only sinless football player on this earth and that's a fact (had to throw in a Tebow reference just because everyone else is doing it). Moreover, Rudy's story is in no way a reflection on Notre Dame's program today. Not that I hate Rudy: I hate how people at Notre Dame use his story to try to prove that Notre Dame's program is full of athletes with upstanding character. They try to say that Rudy is evidence that Notre Dame cares about it's athletes and that they have unmatched tradition. That's bullshit. It's a cool story, just unfortunate that I have to cringe every time I hear it because the image of Lou Holtz masturbating almost immediately pops into my head.