A Las Vegas businessman, whose brief moment in the spotlight as a Notre Dame football player was the subject of the 1993 movie "Rudy," paid a $382,866 fine to the U.S. Securities and Exchange Commission after federal regulators said he and his partners engineered a stock fraud scheme.
In a statement posted to its website Friday, the SEC said Daniel Ruettiger and 12 other individuals associated with Ruettiger's company, Rudy Nutrition, grossed more than $11 million in 2008 from a "fraudulent scheme."
The SEC suspended trading and later revoked registration of the stock in late 2008. Rudy Nutrition is no longer in business.
The SEC said Ruettiger and 10 others listed in the lawsuit agreed to settle without admitting or denying the allegations.
In a lawsuit, the SEC said Ruettiger founded Rudy Nutrition to compete with Gatorade in the sports drink market.
Rudy Nutrition produced and sold modest amounts of a sports drink called "Rudy," with the tagline "Dream Big! Never Quit!"
However, the SEC said the company was primarily "pump-and-dump scheme," in which companies promote the financial prospects of their stock to drive up a price, then "dump" them in a move that sinks the stock's price and hurts investors.
The movie "Rudy" detailed how Ruettiger walked on to the Notre Dame football and lived out his dream by playing in one game.
Contact reporter Howard Stutz at firstname.lastname@example.org or 702-477-3871. Follow @howardstutz on Twitter.