Wednesday, 26 October 2016
Last updated 14 hours ago
Aug 26 2013 | 10:28am ET
The hedge-fund partner of prominent college football coach Tommy Tuberville has pleaded guilty to defrauding investors.
John David Stroud struck a plea deal with Alabama prosecutors that will see him pay $2.1 million in restitution to investors and spend between two and 20 years in prison. Tuberville, who was sued by the investors, was not charged criminally.
Alabama authorities say that Stroud ran a Ponzi scheme at TS Capital Partners from 2008 through 2011, stealing some $5.2 million from investors to cover his personal expenses. Stroud said that Tuberville, who was the head football coach at Auburn University when they established the hedge fund, had nothing to do with its operations.
Tuberville is now the head coach at the University of Cincinnati.