Who is Howard Rubin? The ex-Wall Street trader charged in federal sex trafficking case

Howard Rubin, once a famed Wall Street bond trader whose career inspired passages in Michael Lewis’ Liar’s Poker, now faces some of the most serious criminal charges of his life. On Friday, federal prosecutors in Brooklyn unsealed an indictment accusing the 70-year-old financier and his former personal assistant, Jennifer Powers, of running a decade-long sex trafficking ring that lured, transported, and brutalized women under the guise of consensual encounters.

Rubin, who amassed vast wealth through his years at Salomon Brothers, Bear Stearns, Merrill Lynch, and later Soros Fund Management, was arrested by FBI agents at his home in Fairfield, Connecticut. Powers, 45, was taken into custody in Texas. Both were charged with sex trafficking, transporting women across state lines for prostitution, and other offenses. Rubin additionally faces allegations of bank fraud tied to Powers’ mortgage.

Allegations of Violence and Coercion

The 10-count indictment paints a disturbing picture of Rubin’s secret life between 2009 and 2019. Prosecutors say the financier rented luxury hotel rooms and later maintained a lavish Manhattan penthouse, which was allegedly converted into a soundproof “sex dungeon” outfitted with BDSM equipment, including a device to shock women.

Although the women were recruited with promises of payment and consensual encounters, prosecutors allege Rubin routinely pushed beyond their boundaries, inflicting injuries so severe that one woman required surgery. Others reported long-lasting pain, bruising, and psychological trauma.

Rubin and Powers are accused of coercing women into signing non-disclosure agreements, kept in a safe in the penthouse, that threatened heavy penalties if they ever spoke about what occurred. According to prosecutors, Rubin used these NDAs to intimidate women and prevent them from seeking help.

Prosecutors: Fear, Intimidation, and a “Hitman” Plot

Prosecutors argued that Rubin poses an extreme flight risk, pointing to his vast wealth, including $74 million in a Cayman Islands account as of last year. They also cited chilling claims that Rubin once discussed hiring a hitman via the dark web to target women who had filed a civil suit against him—though he allegedly never followed through.

Assistant U.S. Attorney Joseph Nocella Jr. told the court that Rubin “used his wealth to mislead and recruit women to engage in commercial sex acts, where he then tortured women beyond their consent, causing lasting physical and psychological pain.”

Judge Pamela K. Chen ordered Rubin detained without bail, at least for now, citing the severity of the charges and his potential danger to the community. Prosecutors have also requested a “substantial bail package” for Powers.

History of Civil Cases

This is not the first time Rubin’s alleged conduct has come under scrutiny. In 2017, he was sued by three women who claimed they were beaten and sexually abused by him in Manhattan. Five years later, in 2022, a federal civil jury found him liable for sex trafficking six women and ordered him to pay nearly $4 million in damages. Rubin is currently appealing that judgment.

From Wall Street Star to Federal Defendant

Rubin’s fall from grace is particularly striking given his once-celebrated career. In the 1980s, he became a star bond trader at Salomon Brothers before stints at Bear Stearns and Merrill Lynch. At Merrill, unauthorized mortgage securities trades in 1987 cost the firm $250 million and ended his tenure, an episode immortalized in Liar’s Poker. He later went on to work with George Soros’ fund before retreating from public life.

Now, federal prosecutors say the same wealth that once made Rubin powerful in financial circles was redirected into a violent trafficking scheme that left victims scarred.

What Comes Next

Both Rubin and Powers face a mandatory minimum sentence of 15 years if convicted of sex trafficking, with the possibility of life imprisonment. The indictment identifies at least six women but suggests dozens may have been involved.

Rubin pleaded not guilty during his initial court appearance. His attorney, Michael Gilbert, has not issued a public statement. Powers’ lawyer has also declined comment.

As the case unfolds, prosecutors say more victims could come forward, with the indictment underscoring a grim truth: “Human beings are not chattel to be exploited for sex and sadistically abused.”

FAQ Section

Q1: Who is Howard Rubin?
Howard Rubin is a former Wall Street bond trader who worked at Salomon Brothers, Merrill Lynch, Bear Stearns, and Soros Fund Management. He is now facing federal sex trafficking charges.

Q2: What is Howard Rubin accused of?
Rubin is accused of luring women across state lines for prostitution, brutally assaulting them beyond their consent, and coercing them into signing NDAs to cover up his actions.

Q3: Who is Jennifer Powers in the case?
Jennifer Powers, Rubin’s former assistant, has been indicted alongside him for allegedly helping to recruit and manage women in the trafficking operation.

Q4: What happened in Howard Rubin’s Manhattan penthouse?
Prosecutors allege Rubin maintained a soundproof “sex dungeon” outfitted with BDSM equipment, where women were subjected to abuse, intimidation, and physical harm.

Q5: How much time could Rubin face in prison?
If convicted, Rubin faces a mandatory minimum of 15 years in prison, with the possibility of life imprisonment.

Q6: Has Rubin faced allegations before?
Yes. In 2017, three women sued him for sexual abuse, and in 2022, a civil jury found him liable for sex trafficking six women, awarding nearly $4 million in damages.