Class action settlements are designed to provide relief to individuals who have been harmed by unlawful practices—not to be exploited as personal piggy banks. Yet, a recent indictment in Tennessee highlights how vulnerable these settlement funds can be to abuse—and how creative fraud can become when it intersects with sports history.
Federal prosecutors announced that George Herman Ruth—who happens to share a name with New York Yankees legend Babe Ruth—has been charged in U.S. District Court in Greeneville, Tennessee, with orchestrating a scheme to defraud numerous class action settlements. According to the indictment, unsealed on August 12, 2025, Ruth allegedly submitted false claims using the identities of deceased or retired professional baseball players, ultimately seeking over $550,000 in improper payouts.
Notably, Ruth was previously convicted in 2020 for a Social Security fraud scheme, served prison time, and was under federal probation from October 2023 until July 2025—less than a month before the current indictment.
The charges against Ruth are extensive, totaling 91 criminal counts, including:
- Mail fraud
- Aggravated identity theft
- Fraudulent use of Social Security numbers
- Money laundering
- Making false statements to his probation officer
- Possession of firearms by a convicted felon
If convicted, Ruth faces significant prison time and financial penalties.
The Mechanics of Class Action Settlement Abuse
Class actions often involve large numbers of claimants and relatively small individual payouts. This dynamic can make them susceptible to fraudulent claims. In Ruth's case, prosecutors allege he exploited this by assuming the identities of former professional baseball players to slip fraudulent claims into the system—sometimes using names linked to now-defunct teams like the Philadelphia Athletics, St. Louis Browns, and Kansas City Packers.
The settlements targeted ranged widely—from contact lens price-fixing to employment discrimination suits.
To facilitate the fraud, Ruth allegedly opened dozens of P.O. boxes across at least 10 cities in Tennessee and laundered proceeds through a shell company called El Mundo Marketing, LLC. He submitted hundreds of fraudulent claims and used stolen or fabricated Social Security numbers to back up the filings.
Because many consumer class actions rely on claimant-submitted forms and self-certification, bad actors sometimes test the system by flooding it with fake submissions. While claims administrators employ audits, fraud-detection tools, and verification processes, the sheer volume of claims can make comprehensive enforcement difficult—particularly when the fraud is dispersed and well-disguised.
Why This Case Matters
This indictment underscores two key legal takeaways:
1. Identity Theft in Civil Litigation Contexts
Identity theft isn't confined to credit card fraud or bank account hacking. Misusing another person's identity—even that of a deceased individual—to claim settlement funds remains a federal crime, carrying severe consequences.
2. Integrity of the Class Action Process
Fraudulent claims not only undermine the purpose of class action relief but also dilute the recovery available to legitimate claimants. Every dollar wrongfully paid out is a dollar taken from the victims these settlements were designed to help.
Federal prosecutors emphasized that this case reflects a broader commitment to protecting the integrity of class action settlements and holding accountable those who exploit systemic vulnerabilities for personal gain.
Sports, Law, and Irony
The case has naturally drawn media attention due to Ruth's name. While unrelated to the Yankees slugger, the juxtaposition of "Babe Ruth" facing allegations of fraudulent play—this time off the field—highlights the strange intersections of sports and law. The use of long retired or even deceased athletes' identities only deepens the irony.
Looking Ahead
This prosecution may signal a more aggressive federal posture toward class action settlement fraud—an area that historically receives less attention than other forms of white-collar crime. For practitioners, it's a timely reminder to advise clients—whether administrators, defendants, or claimants—that settlement processes must be vigilantly monitored and protected from abuse.
With the number of mass settlements continuing to grow, the Ruth indictment stands as both a cautionary tale and a call to action.
References
- ESPN. Man with Same Name as Babe Ruth Charged in Fraud Case. August 25, 2025. https://www.espn.com/mlb/story/_/id/46073965/man-same-name-babe-ruth-charged-fraud-case
- US News (AP). Man with Same Name as Babe Ruth Charged with Using Old Baseball Players' Names for Settlement Fraud. August 25, 2025. https://www.usnews.com/news/us/articles/2025-08-25/man-with-same-name-as-babe-ruth-charged-with-using-old-baseball-players-names-for-settlement-fraud
- The New York Times / The Athletic. Tennessee Man Named George Herman "Babe" Ruth Indicted in Class Action Fraud Scheme. August 25, 2025. https://www.nytimes.com/athletic/6575116/2025/08/25/tennessee-man-george-herman-babe-ruth-fraud/
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