Money manager and his personal assistant detained in sex trafficking case

Renowned money manager Howard Rubin and his former personal assistant Jennifer Powers were arrested Friday morning on multiple federal charges, including sex trafficking and transporting women across state lines for commercial sex, according to prosecutors.

Rubin, now 70, faces a 10-count indictment accusing him of running a decade‑long operation in which women were recruited—often under false pretenses—to travel to New York, where they allegedly engaged in paid sexual encounters with him. The indictment claims these encounters sometimes took place in luxury hotels, but later shifted to a Manhattan penthouse he leased, in which he converted a bedroom into a so‑called “sex dungeon.” That room was allegedly soundproofed and outfitted with bondage and sadomasochism equipment, and included a device that could be used to shock or electrocute women. 

Prosecutors assert that many of the acts went beyond the women’s consent, causing physical injuries or emotional trauma. Some victims allegedly required medical attention after encounters, and the indictment also states that Rubin ignored “safe words” and continued assaults even when the women were incapacitated. 

Authorities say Rubin and Powers spent over $1 million of Rubin’s funds to recruit and maintain this trafficking network between 2009 and 2019. Powers, 45, is accused of arranging travel, coordinating payments, managing complaints by victims, and overseeing the “dungeon’s” upkeep. 

At his detention hearing in Brooklyn, Rubin pleaded not guilty and was ordered held without bail. The judge cited concerns about his substantial resources—including overseas accounts—and his potential to flee. Prosecutors further claimed Rubin had discussed hiring a “hit man” to intimidate women who brought civil suits against him. 

Rubin has a long financial career: he worked at Salomon Brothers, Merrill Lynch, Bear Stearns, and later managed a mortgage securities fund for Soros Fund Management. 

His legal troubles, however, are not new. In 2017, several women sued Rubin, alleging sexual violence and abuse in his Manhattan penthouse. In 2022, a civil jury found him liable for sex trafficking six women and awarded them about $3.85 million in damages; Powers was not found liable in that civil suit. Rubin is currently appealing that judgment. 

Powers was arrested in Southlake, Texas, and is scheduled to appear in court in the Northern District of Texas. She also faces a bank fraud charge related to her mortgage finances. 

If convicted, Rubin and Powers each may face a mandatory minimum of 15 years in prison and up to life in prison for the sex trafficking charges.

Source: CNBC