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Rubin Aide Jennifer Powers, Husband Charged With Tax Fraud as Sex-Trafficking Case Advances

Prosecutors allege Rubin bankrolled the family’s lifestyle with millions during a decade-long trafficking scheme.

Overview

  • A superseding indictment filed Tuesday adds tax-fraud charges against Jennifer Powers and her husband, Stephen, for allegedly failing to report roughly $8–9 million Rubin paid to cover their expenses.
  • Powers is scheduled to be arraigned in Brooklyn federal court on Wednesday after her release in Texas on personal recognizance with a GPS monitor.
  • Rubin, who has pleaded not guilty, remains detained without bail as a flight risk following last week’s 10-count sex-trafficking indictment.
  • Prosecutors say the 2009–2019 operation recruited women, often former Playboy models, for paid encounters that escalated into violent, non-consensual abuse in luxury hotels and a soundproofed penthouse “dungeon.”
  • Court filings describe NDAs with $500,000 penalties, structured PayPal payments, and an email about outfitting the dungeon, while a 2017 civil case led to a verdict finding Rubin liable and clearing Powers, now on appeal; both face a mandatory minimum of 15 years on the top trafficking counts if convicted.