The man best known for losing more money on Wall Street than anyone else before the 1987 stock market crash stands to lose $27 million more and what’s left of his reputation, if a federal court believes the allegations in an explosive new lawsuit filed against him and a gaggle of so-called conspirators in Brooklyn federal court on Thursday.
In the complaint, three Florida women, filing under pseudonyms, have accused 62-year-old Howard Rubin of leading an organized human-trafficking ring in which he allegedly employed women to lure models to his $8 million Manhattan Penthouse under the guise of a photoshoot or companionship. Once there, the women claim, he led them into a sex-dungeon where he subjected them to sexual assault, rape, false imprisonment, and beatings so severe they would lose consciousness and one had to undergo reconstructive surgery to repair her breasts.
The women—who also say Rubin and his co-conspirators threatened them to keep quiet following the alleged assaults—filed their suit under the Racketeer Influenced and Corrupt Organizations Act, a law originally created for prosecution of members of the mob.
According to the lawsuit, Rubin’s scheme went like this:
Stephanie Shon, a 29-year-old former model and current account manager for a legal support services company, would reach out to bikini models and exotic dancers on Instagram and say something to the effect of, “My boss wants to meet you.” Shon then allegedly offered the the women $2,000—no strings attached—to fly to New York and meet with Rubin in his Manhattan apartment. If Rubin “liked her,” they might take some naughty photos, but nothing too extreme, and he would pay her an additional $3,000. Rubin just liked hanging out with Playboy models, Shon said.
If Shon, a leggy, honey blonde in her photos on social media (she deleted her accounts this morning) couldn’t seal the deal, then Jennifer Powers, a former Hawaiian Tropic model who had once dated Rubin and was now in his employ, would follow up with messages assuring them that he was “a great guy,” and that the trip “would not be about sex,” according to the complaint.