Mike Rucker, a retired Pro Bowler and NFL defensive lineman who won national championships with Nebraska in the 1990s, is suing his longtime financial adviser over claims of mismanaging nearly $3 million of his money.
Mike Rucker
Mike Rucker LINCOLN JOURNAL STAR
Rucker and his wife, Kristina, filed a lawsuit in March in North Carolina Business Court against their former investment adviser, Jon Kubler, who is originally from Nebraska, and his companies, including Steelpool Inc. and Capital Synergy Partners. The Ruckers claimed they unknowingly invested their money into a Ponzi scheme.
In the lawsuit, the Ruckers cited over $2.8 million in losses due to Kubler’s alleged actions.
Kubler managed the Ruckers’ finances for 21 years before the Securities and Exchange Commission notified them in 2023 that Kubler was accused of running a commercial real estate Ponzi scheme.
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The SEC’s complaint stated Kubler and his companies raised approximately $5.6 million in investor funds for commercial real estate companies, yet only invested 4% of that money. The agency alleged that Kubler used investor money to make Ponzi-like payments to earlier investors and also used that money for personal use, including payments to a winery, buying antiques and paying for online dating services.
Last month, Kubler was indicted by the Justice Department on charges of securities fraud and money laundering. The agency claimed he was an unlicensed investment adviser who preyed on the elderly and other vulnerable people while running a $4 million investment scheme with Ponzi-style payments to his victims.
The Ruckers claimed they had no knowledge of Kubler’s scheme until they were notified by the SEC when Kubler attempted to claim credits for transfers made to accounts he opened in their names, without their knowledge.
The Ruckers are seeking damages with interest, attorney’s fees and all of their accounting documents.
Rucker met Kubler when he was playing college football for Nebraska.
Kubler “integrated himself with Mike, who was not knowledgeable about finance and was focused on a promising NFL career,” the complaint stated. Rucker gave Kubler all access to his finances as his financial adviser.
In 2009 Kubler convinced them to invest in Aksarben, a commercial real estate company in Nebraska he controlled, which tanked in 2017, according to the lawsuit. They claim Kubler never paid back investors.
The Ruckers also alleged that Kubler diverted more than $1 million of their funds. He also allegedly forged their signatures to open bank accounts in their names and company names.
Kubler used the accounts to make it look like they were receiving payments when instead he was “only shuffling money around,” according to the lawsuit.
Kubler convinced Rucker’s wife to take out a $14 million life insurance policy to generate fees and commission that Kubler paid to himself as the placing agent, according to the lawsuit. That policy caused the Ruckers significant financial loss, the couple claimed.
The suit also alleged that Kubler mismanaged the Ruckers real estate dealings in Nebraska. They claimed he manipulated property management contracts and directed rental income to benefit himself.
In 2022, Kubler took control of a line of credit they had secured to build a house. He then used that line to pay himself and deposit money into their accounts, according to the lawsuit.
Kubler racked up $100,000 on the credit even though their house was already built and they were paying the balance down, the suit alleged.
The Ruckers also discovered mismanagement of their funds and books by Kubler. They alleged he took out loans under their name and real estate business’s name to pay himself.
Attorneys for the Ruckers and Kubler did not respond to requests for comment from The Charlotte Observer.
Earlier this year, Kubler settled the SEC’s claims and agreed to pay penalties.
During his college career with the Nebraska Cornhuskers, Rucker won three national championships.
Rucker played his entire nine-season NFL career with the Panthers before retiring in 2008. He was named to the 2003 Pro Bowl and won the NFL Alumni Defensive Lineman of the Year Award that year, while helping the Panthers reach Super Bowl XXXVIII.
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