Tuesday, 22 July 2014
Last updated 8 hours ago
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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…