Tuberville Partner Indicted For Hedge Fund Fraud

May 24 2012 | 3:21am ET

The hedge fund partner of Texas Tech University football coach Tommy Tuberville has been arrested and charged with fraud.

John David Stroud was indicted on May 7 on 21 criminal counts, including unregistered sale of securities, fraud and theft. He was arrested on May 15 and posted bail the following day.

According to the Alabama Securities Commission, Stroud ran a Ponzi scheme at TS Capital Partners from 2008 until last year. Prosecutors say he stole some $5.2 million from investors to cover personal expenses.

Tuberville was not charged in the case; the former Auburn University coach was also not named by the Commodity Futures Trading Commission when it announced its investigation into Stroud in March. But he does face a lawsuit filed by TS investors, accusing him of commingling his assets with those of investors and of lying to clients.

For his part, Tuberville claims to be a victim of the fraud, saying he lost $450,000. Stroud has seconded the coach's protestation that he had little to due with the operations of the Auburn, Ala.-based firm.

Stroud is set to go on trial on Oct. 1.


In Depth

Q&A: George Schultze On His Fund's Unique Approach to Distressed Investing

Apr 16 2015 | 1:01am ET

George Schultze is a managing member of Schultze Asset Management, a long/short...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Minnesota Supreme Court Rejects The Ponzi Scheme Presumption: Lenders Claw Back Some Of Their Own Rights

Apr 17 2015 | 9:23am ET

A recent court ruling in Minnesota has put an end to the Ponzi Scheme Presumption...

 

Editor's Note