Chad Peter Smanjak Cops to Scam with Sports Drink Named After Notre Dame's Famous Rudy

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A former Long Beach resident who fled to South Africa as a fugitive pleaded guilty to orchestrating a scam involving a sports drink named after Notre Dame's most famous football benchwarmer.

Chad Peter Smanjak, 38, copped in U.S. District Court to one count of conspiring to commit securities fraud and, as part of a plea deal, he will pay full restitution to be determined to more than 250 marks. He is also likely to draw five years in prison.

Smanjak and others obtained millions of shares of penny stock in the Rudy Nutrition sports drink company and then pumped up the trading volume by trading it among themselves and issuing misleading press releases. They then dumped the stock on the market until federal regulators halted trading in 2008. The feds call these "pump and dump" scams, and Smanjak enjoyed a $5.2 million profit.

Feds Allege "Pump and Dump" Fraud Involving Panamanian Banks, Long Beach Fugitive and Sports Drink Named After Notre Dame's Rudy

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David "Rudy" Ruettiger
The SEC on Nov. 14, 2008, revoked the registration of each class of registered securities of Rudy Nutrition for failure to make required periodic filings with the commission. David "Rudy" Ruettiger, whose story of becoming a member of the Notre Dame Fighting Irish football team is depicted in the 1993 film Rudy, was the CEO of Rudy Nutrition, which was marketed as a health-conscious alternative to high-sugar soda and sports drinks. Ruettiger was not charged with a crime in the wire fraud case, but he did have to agree to pay $382,866 to settle Securities and Exchange Commission (SEC) charges. The SEC also barred him from serving as an officer or director of a publicly traded company.

Smanjak fled to his native South Africa in 2010 after authorities executed a search warrant. He was arrested in January in Johannesburg by special agents with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) Attaché office in Pretoria and members of South Africa's Police Services. Smanjak waived extradition and voluntarily returned to the U.S. to face charges.

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5 comments
Mike
Mike

This guy is a massive thief and drug dealer, you will have to sue him personally. I do know however that he invested that money into deals in Mozambique and his family help him hide profits all over the place. So he actually got away with it and only has to spend a short time in jail for the millions in profit he will eventually get out of it. Hope you come right and get back whats yours!

Chet
Chet

Can we get back some of our money.....Please Help My freinds and I !!!

Chet
Chet

THIS WAS NOT HIS ONLY SCAM......CAN SOMEONE HELP US !!!! PLEASE

Chet
Chet

Where is our justice can someone help us who bought BOUGAS stocks from him also....Chad Scamed us out of our huge amount of money ALSO Can someone help us  !!!!!! PLEASE HELP !!!!!!!!!!!!

Chet
Chet

Chad also sold me stock of the same sort but not the enegery drink....also sold thousands and thousands of shares to  me and my freinds......Can someone help us!!!!

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