Former Soros Fund manager charged for allegedly abusing women in Manhattan sex 'dungeon'

Soros Fund Management's former portfolio manager, Howard Rubin (70), was indicted by the Department of Justice for allegedly luring women - including former Playboy models - to a Manhattan penthouse fitted with a soundproof room and BDSM equipment, described by prosecutors as a "dungeon" where, according to the indictment, violent sexual abuse was committed.

In addition to Rubin, his longtime assistant, Jennifer Powers (45), was also arrested and charged. Both are charged with sex trafficking and bank fraud, prosecutors said.

“As alleged, the defendants used Rubin’s wealth to mislead and recruit women to engage in commercial sex acts, where Rubin then tortured women beyond their consent, causing lasting physical and/or psychological pain, and in some cases physical injuries,” U.S. Attorney Joseph Nocella Jr said. “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.”

According to the indictment, between 2009 and 2019, Rubin engineered a recruitment ring to pay for sexual encounters by resorting, in a significant number of cases, to force, fraud and coercion. The indictment detailed that multiple confidentiality agreements and different types of pressure were used to silence victim complaints. It also specified that the financier spent more than one million dollars on flights, payments, and maintenance of the penthouse, near Central Park, equipped with restraints and electric shock devices.

The FBI described the sex trafficking scheme as an operation aimed at exploiting women to leave them with physical and psychological trauma ultimately.

"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," FBI Deputy Director Christopher Rai said in a statement.

According to prosecutors, Rubin was arrested in Connecticut and pleaded not guilty.

A federal judge in Brooklyn ordered him held without bail as a flight risk, despite his defense's attempt to offer a multimillion-dollar bail of $25 million.

Powers, instead, was arrested in Texas and is scheduled to make her first court appearance in the Northern District of Texas.

The investigation indicates that the victims included women in extremely vulnerable situations and that some were allegedly induced to consume alcohol or drugs. After the encounters, payments to the allegedly abused women were made by wire transfers or applications such as PayPal and Venmo; sometimes splitting the wire transfers to avoid bank reporting thresholds ($10,000).

In addition to the sex trafficking scheme, Rubin is charged with bank fraud charges for allegedly falsifying mortgage documentation to help Powers purchase a home in Texas.

With a three-decade career at Merrill Lynch, Bear Stearns and Soros Fund Management (2008-2015, focus on MBS), there is no indication that Rubin maintains a personal link to progressive tycoon George Soros.

Previously, in 2017, several alleged victims sued him and a jury attributed civil liability to him for $3.9 million. That judgment is now under appeal.

If found guilty of sex trafficking, both Rubin and Powers face minimum sentences of 15 years and up to life in prison. Rubin, in addition, also risks up to 30 years for bank fraud.