Southlake mom, former substitute teacher released after sex trafficking indictment linked to New York sex “dungeon”

By Ginger Allen, S.E. Jenkins

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    SOUTHLAKE, Texas (KTVT) — A Southlake mom and former substitute teacher was released from federal custody with a GPS monitor on Monday. U.S. prosecutors allege she is involved in sex trafficking women to New York to a financier’s so-called sex “dungeon.”

Jennifer Powers entered the courtroom in shackles around 2 p.m. The 45-year-old was softspoken. She told the judge she understood the charges.

This initial hearing came just hours after Carroll Independent School District confirmed she was a substitute teacher but had been dismissed.

This appearance was for a federal criminal case, but CBS News Texas learned she has also been involved in a civil case that was dismissed in 2022.

Powers allegedly arranged encounters for Rubin Prosecutors allege that between 2009-2019, the two arranged for women to travel to New York City to engage in sex with Rubin at his penthouse on 57th Street or in luxury hotels. Rubin had converted a bedroom of his penthouse into a soundproof sex “dungeon,” prosecutors said, and would engage in sadomasochistic sex with the women. He allegedly used a device to shock or electrocute the women, prosecutors said.

Prosecutors allege Rubin would establish a “safe word,” but then ignore it or prevent women from saying it because they were bound and gagged. He allegedly encouraged women to drink alcohol and take sedatives. Additionally, Rubin is accused of threatening women with legal action and public shaming if they sought help or reported the incidents.

“For many years, Howard Rubin and Jennifer Powers allegedly spent at least one million dollars to finance the commercial sexual torture of multiple women via a national trafficking network. The defendants allegedly exploited Rubin’s status to ensnare their prospective victims and forced them to endure unthinkable physical trauma before silencing any outcries with threats of legal recourse,” FBI Assistant Director in Charge Raia said.

Civil case against Jennifer Powers and Howard Rubin In or about 2017, Powers and others, including Howard Rubin, a former Wall Street portfolio manager, were sued in the U.S. District Court for the Eastern District of New York by women who allegedly engaged in commercial sex acts with Rubin, requesting millions of dollars in damages.

According to the women, they were asked to sign a non-disclosure document that asked women to stay quiet about engaging in “…sexual, sadomasochistic (sm) activity that can be hazardous and on occasion cause injury…”

Attorneys for the women entered exhibits that they claimed showed Powers texting the women, sending airline tickets, arranging payments to them for up to $5,000 and confirming entry into Rubin’s New York penthouse.

In 2022, the civil case against Powers was dismissed by a jury. All other defendants were ordered to pay compensatory damages. On Friday, CBS News Texas learned the former substitute teacher and Rubin are now facing a 10-count criminal indictment.

The U.S. Attorney’s Office says that as Rubin’s personal assistant, Powers was involved in misleading and recruiting women between 2009 and 2019.

Carroll ISD calls the allegations “serious” In a statement, Carroll ISD called the allegations “serious” and confirmed it is working with “the appropriate agencies.”

“We understand how much trust families place in our district, and I want to assure you that the safety and well-being of our students are our highest priorities,” CISD Board President Cam Bryan said. “The individual in question is no longer employed by Carroll ISD, has been fully removed from all roles, and no longer has any access to our campuses or facilities.”

CBS News Texas reached out to Powers’ attorney, who has not responded to the requests. CBS News Texas also reached out to several of Rubin’s attorneys, but they have not responded.

After processing, Powers will be free to go home on a monitor; however, the judge made sure she was aware of her next hearing in New York later this week.

Powers and Rubin are both charged with sex trafficking and transporting women across state lines for sex. If convicted of the top charge of sex trafficking, they each face 15 years to life in prison. Rubin pleaded not guilty at a federal court in Brooklyn, according to the Associated Press.

Rubin was also charged with bank fraud in connection with misrepresentations made to a bank in the course of financing Powers’ mortgage for the Texas home of Powers and her husband.

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