Tag:John David Stroud
Posted on: February 28, 2012 2:06 pm

Tuberville named in $1.7M fraud lawsuit

Posted by Jerry Hinnen

Texas Tech is in the middle of its third spring practice under Tommy Tuberville. But no matter how well the Red Raiders may be doing on the Lubbock practice fields, it's been a tough month for Tuberville away from football.

A police investigation into Tuberville's wife, Suzanne Tuberville, following the death of an 87-year-old man who was injured in a November accident in which Suzanne was involved only reportedly closed Monday. Tuberville's legal stress isn't going away anytime soon, though: the Huntsville (Ala.) Times reported Tuesday that Tuberville is near the center of a lawsuit alleging more than $1.7 million worth of fraud on the part of Tuberville and his investment partners at the hedge fund TS Capital Partners.

The suit was filed by a collection of seven plaintiffs in U.S. District Court in Montgomery (Ala.) Friday. The Times details some of the allegations against Tuberville and TS Capital co-founder John David Stroud:

The 32-page suit alleges that Tuberville and Stroud mixed their clients' assets with their own, failed to file tax returns, falsified client statements, falsified fund performance reports and "generally disregarded and violated customary practices and procedures followed in the hedge fund and security investments industry."

Several plaintiffs, including at least one former employee of TS Capital, have demanded their money be returned, yet, according to the complaint, none of the money invested has been accounted for. The suit also states that investors listed "have reason to believe that most, and possibly all, of their invested funds have been misappropriated, improperly converted and/or squandered."

The suit lists 16 complaints against Tuberville and Stroud, including "negligence or wantonness," "fraudulent misrepresentation" and "fraudulent suppression."
Tuberville was the subject of a 2009 Birmingham News story which touted him as an "amateur stock guru" and detailed his role within the Auburn-based TS Capital, where he maintained an office between his departure from the Auburn head coaching position and his hire at Tech.

Whatever the results of the suit, it won't keep Tuberville from performing his duties with the Red Raiders, and won't prevent his team from rebounding from their disappointing 5-7 2011 season. But that mark showed how much work there is to be done in Lubbock, and anything that might blur their head coach's focus -- and you would think a $1.7 million lawsuit would do it -- certainly won't be welcome news either for Tuberville or his program.

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