Feds accuse Tuberville business partner of fraud - KCBD NewsChannel 11 Lubbock

Feds accuse Tuberville business partner of fraud

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Tommy Tuberville (Photo provided by Texas Tech University) Tommy Tuberville (Photo provided by Texas Tech University)
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    Tuberville responds to fraud lawsuit

    Wednesday, February 29 2012 6:44 PM EST2012-02-29 23:44:38 GMT
    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." Tuberville's attorney sent us a statement on Tuesday afternoon...

Coach Tommy Tuberville's partner in an investment fund has been accused of fraud by federal officials in a civil complaint. John David Stroud is named in the complaint but not Tuberville.
 
The official complaint says, "Stroud and his companies fraudulently solicited and accepted at least $4.8 million from at least 17 individuals..." Stroud and Tuberville's company, TS Capital, is based in Auburn, Alabama, where Tuberville was head football coach before coming to Texas Tech. 
 
A federal judge on Wednesday issued a restraining order against Stroud and the company.  It says Stroud promised one thing but did something else with investor's money.  Specifically it says Stroud was trading in commodities futures and he used some of the money for personal expenses such as entertainment and travel. 
 
Word broke last week of a civil lawsuit against Stroud and Tuberville.  Tuberville denied any wrongdoing and Stroud said in a written statement that Tuberville did nothing wrong. 
 
After the restraining order became public on Wednesday, KCBD NewsChannel 11 reached out to Stroud's attorney who declined to comment on the latest developments.

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