Wednesday, 29 March 2017
Last updated 30 min 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.