Football Coach’s Partner Pleads Guilty To Running Ponzi Scheme

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.


In Depth

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

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

Opportunities Ahead: Asian Fixed Income and Currency Markets

Apr 24 2015 | 6:18am ET

For hedge funds focusing on Asia, the policy uncertainty, unclear interest rate...

 

Editor's Note