Ruth Handler company, Ruthton Corp., formed by her and Peyton Massey, which manufactured a more realistic version of a woman's breast, called "Nearly Me". She personally fitted one for the then first lady, Betty Ford. In 1974, Handler resigned from Mattel after investigations of producing fraudulent financial reports. In 1978, Handler was charged with fraud and false reporting to the Securities and Exchange Commission. She pleaded no contest, was fined $57,000 and sentenced to 2,500 hours of community service.She blamed her illness for making her "unfocused" on her business. Though the Handlers took a more hands-off approach to their company's business practice
Ruth Handler manufacturing. The company's first big-seller was the "Uke-a-doodle", a toy ukulele. Ruth Handler claimed her daughter Barbara, who was becoming a pre-teen, played with paper dolls by pretending they were adults. Handler noticed that in such play, children would act out future events, rather than the present. Handler noted the limitations of the paper dolls, including how the paper clothing failed to attach well. She wanted to produce a three-dimensional plastic "paper doll" with an adult body and a wardrobe of fabric clothing, but her husband and Mr. Matson thought parents would not buy their children a doll with a