Texas Tech football coach Tommy Tuberville has been sued in an Alabama federal court. The lawsuit by John Abrams and other individuals accuses Tuberville of "fraud and deceit."
The lawsuit claims that Tuberville and his partner John David Stroud created an Auburn, Alabama-based hedge fund called TS Capital Partners, into which the plaintiffs invested "approximately $1,760,700" from 2008 through 2011. The lawsuit says that Tuberville and Stroud provided false information in some cases and omitted information at other times including the actual profits and losses of the fund.
The lawsuit says that the investors stand to lose all their money, although it also says, "Plaintiffs do not have credible information regarding the current location and amounts of their invested funds."
The lawsuit goes one step further and says Tuberville and Stroud comingled the hedge fund money with their own personal assets. It says the men unjustly enriched themselves at the expense of the investors, and it accuses them of failing to register the investments with state and federal regulators.
Tuberville had been coach at Auburn University in Alabama prior to being hired in 2010 by Texas Tech.
Tuberville's attorney, Vic Hayslip, released a statement on Tuesday afternoon:
"Coach Tuberville was surprised to learn of the pending lawsuit involving TS Capital Partners, LLC and he categorically denies any wrongdoing which has been attributed to him in this suit. He has never even met or spoken with most of the plaintiffs and he is acquainted minimally with the few other plaintiffs only because they were employees at TS Capital Partners, LLC. Coach Tuberville absolutely never solicited any investment from any of these or other individuals. It is important to note that Coach Tuberville himself invested significant funds and has never received any return from his own investment. Accordingly, he is hopeful the plaintiffs, who were employees, can help to provide answers as to what transpired. Coach Tuberville has cooperated with every regulatory inquiry and not a single one has asserted that he was involved in any wrongdoing. He intends to vigorously defend the allegations made against him and is confident he will be exonerated."
Stroud's attorney released a statement on Wednesday:
"Mr. Stroud denies all the allegations of wrongdoing in the Complaint. He did not solicit the plaintiffs to invest with TS Capital, and did not engage in the conduct of which he is accused. He also feels compelled to make a statement because of the unwarranted media attention this matter has received, given Coach Tuberville's relationship with TS Capital. Mr. Stroud wishes to make it clear that Coach Tuberville did not solicit any investments of any of the plaintiffs, and was not involved in the day-to-day operations of TS Capital. Indeed, some of the plaintiffs were employees of TS Capital and were closely involved in the matters of which they complain in the lawsuit. It is disingenuous and incorrect for them to claim now that Mr. Stroud or Coach Tuberville acted improperly with respect to any of them. Given Coach Tuberville's lack of involvement with the day-to-day operations of the company, as well as the fact that he did not solicit the plaintiffs, Mr. Stroud can only surmise that he was named in this lawsuit to garner unwarranted media attention, which has apparently succeeded. Mr. Stroud will vigorously defend the accusations made against him."
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