Texas Tech Coach Sued For Fraud At Hedge Fund

Mar 1 2012 | 3:57am ET

A prominent U.S. college football coach has been accused of malfeasance at his second job as a hedge fund owner.

Tommy Tuberville, the head football coach at Texas Tech University, his partner and his hedge fund were sued by several investors—whom Tuberville said were also employees—who allege that they were misled and that Tuberville and his partner, John David Stroud, used TS Capital Partners as something of a personal piggy bank.

According to the lawsuit, Tuberville and Stroud gave clients false information, while lying by omission at other times. It also accuses the two men of commingling their own assets with those of the hedge fund, and of failing to register the fund with regulators.

Tuberville denied the allegations.

Tuberville "has never even met or spoken with most of the plaintiffs and he is acquainted minimally with the few other plaintiffs only because they were employees at TS Capital Partners, LLC," his lawyer said in a statement. "Coach Tuberville absolutely never solicited any investment from any of these or other individuals. It is important to note that Coach Tuberville himself invested significant funds and has never received any return from his own investment. Accordingly, he is hopeful the plaintiffs, who were employees, can help to provide answers as to what transpired. Coach Tuberville has cooperated with every regulatory inquiry and not a single one has asserted that he was involved in any wrongdoing. He intends to vigorously defend the allegations made against him and is confident he will be exonerated."

Stroud backed his partner up.

"Given Coach Tuberville's lack of involvement with the day-to-day operations of the company, as well as the fact that he did not solicit the plaintiffs, Mr. Stroud can only surmise that he was named in this lawsuit to garner unwarranted media attention, which has apparently succeeded," Stroud's lawyer said in a statement.

The lawsuit, filed in Alabama federal court—TS is based in Auburn, where Tuberville coached for Auburn University for 10 years—indicates that the plaintiffs are afraid they'll lose all of the $1.76 million they invested from 2008 until last year, noting they have no "credible information regarding the current location and amounts of their invested funds."


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.