SOUTHLAKE, Texas—A Southlake woman and the retired New York financier she worked for have been indicted on federal charges of sex trafficking and transporting women across state lines for commercial sex acts in a scheme that allegedly involved a soundproof "sex dungeon" in a Manhattan penthouse.
Jennifer Powers, 45, of Southlake, who served as the financier's personal assistant, was arrested in Texas last week with the assistance of the FBI Dallas Field Office. Her former boss, Howard Rubin, 70, was arrested in Fairfield, Connecticut.
The 10-count indictment unsealed in federal court in Brooklyn alleges that between 2009 and 2019, the defendants recruited and trafficked multiple women to travel to New York to engage in commercial sex acts involving BDSM.
Details of the Alleged Scheme
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Violent Abuse: Prosecutors allege that Rubin exceeded the scope of the women's consent by violently abusing them, causing "lasting physical and/or psychological pain, and in some cases physical injuries."
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The "Dungeon": The acts initially took place in luxury hotels but later moved to Rubin's midtown Manhattan penthouse. The defendants allegedly converted one bedroom into a red-painted, soundproof "sex dungeon" furnished with BDSM equipment, including a device used to shock or electrocute the women.
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Recruitment and Logistics: Powers allegedly ran the logistical aspects of the operation, arranging flights for women traveling to New York and transporting them to the penthouse. The indictment alleges the defendants spent at least $1 million operating the network.
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Non-Disclosure Agreements (NDAs): Rubin and Powers allegedly required the women to sign NDAs that purported to make the women assume the risk of injury and prohibited them from disclosing information. The NDAs were then allegedly used to threaten legal action and public shaming if the women sought legal recourse.
"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,” stated U.S. Attorney Joseph Nocella Jr.
Additional Charges
Rubin was also charged with bank fraud for allegedly making misrepresentations to a bank while financing the mortgage for Powers's home in Southlake, Texas. Powers was also charged in connection with the bank fraud.
Powers is scheduled to make her initial appearance in federal court in the Northern District of Texas. Rubin was arraigned in federal court in Brooklyn.
The case was investigated by the FBI and the IRS Criminal Investigation (IRS-CI). The prosecution is being handled by the U.S. Attorney's Office for the Eastern District of New York's Human Trafficking and Civil Rights Section.
