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Updated: Tommy Tuberville listed in fraud lawsuit

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I’m not sure what it is about head coaches and shady investment opportunities, but Texas Tech head coach Tommy Tuberville has now been linked to two of them in the past year. Tuberville was listed as an investor in former Georgia coach Jim Donnan‘s “retail liquidation company”, GLC, which turned out to be a Ponzi scheme. Now, Tuberville is the subject of Huntsville Times report that lists him as the focal point of a fraud case involving an Auburn-based investment company.

The paper reports a complaint was filed last Friday in the in U.S. District Court in Montgomery against TS Capital and its co-owners, Tuberville and John David Stroud. The document accuses the two of defrauding investors out of more than $1.7 million.

Details from the Huntsville Times

The 32-page suit alleges that Tuberville and Stroud mixed their clients’ assets with their own, failed to file tax returns, falsified client statements, falsified fund performance reports and “generally disregarded and violated customary practices and procedures followed in the hedge fund and security investments industry.”

Several plaintiffs, including at least one former employee of TS Capital, have demanded their money be returned, yet, according to the complaint, none of the money invested has been accounted for. The suit also states that investors listed “have reason to believe that most, and possibly all, of their invested funds have been misappropriated, improperly converted and/or squandered.”

The suit lists 16 complaints against Tuberville and Stroud, including “negligence or wantonness,” “fraudulent misrepresentation” and “fraudulent suppression.”

Yikes.

Tuberville had been involved with TS Capital Partners following his departure from Auburn after the 2008 season. Tuberville was hired by Texas Tech in January, 2010. According to another Birmingham News feature in 2009, Tuberville, “an amateur stock guru”, was looking to “drum up a little business for a big-time hedge fund run by Stroud Capital.”

Like most fraud cases, the company was exposed in the past year when investors started asking for their funds. Then, things started spiraling out of control. That prompted a report from the National Futures Association last October that essentially showed TS Capital had no money to pay investors.

“To date, the NFA has been able to confirm that TS Management and its affiliated entities have in aggregate less than $3,500 based upon bank and brokerage account records produced by Stroud to the NFA,” the NFA report reads.

Tuberville and Stroud didn’t return calls and emails by the newspaper requesting a response. What this means for Tuberville going forward isn’t known, but there’s a valuable lesson we can all learn from this: if someone you know calls you and the words “investment opportunity” come out of their mouth, hang up the ph0ne.

UPDATED 5:45 p.m. ET: In a statement issued via his attorney, Tuberville “categorically denies any wrongdoing” and alleges he “has never met or spoken with most of the plaintiffs.” Tubervill claims he “invested significant funds and has never received any return from his own investment.”

Finally, Tuberville asserts he “has cooperated with every regulatory inquiry and not a single one has asserted that he was involved in any wrongdoing” and will “vigorously defend the allegations made against him and is confident he will be exonerated.”

(courtesy of Aaron Dickens of RedRaiderSports.com) 

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12 Responses to “Updated: Tommy Tuberville listed in fraud lawsuit”
  1. fitz66 says: Feb 28, 2012 3:08 PM

    Which of his assistants will he fire to take the fall here?

  2. mgm36 says: Feb 28, 2012 3:21 PM

    Tuberville is a fraud as the Head Coach at Texas Tech, too

  3. fitz66 says: Feb 28, 2012 3:31 PM

    Fun times at the Tubs household. Conceivably – could he and his wife share a jail cell?

  4. seanmmartin says: Feb 28, 2012 3:50 PM

    This makes TTU look so bad.

    Fire a capable coach because the father of the player involved works at ESPN… hire a criminal to replace him…

    Hope WSU sees success this year.

  5. thefiesty1 says: Feb 28, 2012 4:24 PM

    Whoops, TT should of paid Leach his $800K bonus and kept him.

  6. palmbeachbuckeye says: Feb 28, 2012 4:31 PM

    Tuberville has a big mouth and has taken shots at alot of programs over the years. Karma sux, doesn’t it Tommy?? Let’s see… Jim Tressel covered up his kids selling their own personal items and getting discounts for tattoos and Tubberville defrauded people and the US government out of potentially millions of dollars while his wife injured someone with a motor vehicle and appears to not have been charged with a crime. The hypocrisy stinks…

  7. woebegong says: Feb 28, 2012 4:39 PM

    The guy makes millions coaching a sport and is still trying to get some get rich quick type, of business going. I guess, the old saying, “money Corrupts”, is correct.
    Now, anybody want to buy some slightly soggy, but full of wild life, in south Georgia. I can hook you up with the biggest crook of all. The U.S. Government.

  8. vols84 says: Feb 28, 2012 5:09 PM

    Bring back Mike Leach

  9. drjem says: Feb 28, 2012 5:19 PM

    vol 84

    I agree with you. Bring Mikee back!!!! Problem is…..they won’t offer him his old job & he probably wouldn’t take it.

    I wanted the ” U ” to hire Mikee…..but Noooooooooooooooooooooooooooooooo, that dammed nitwit Donna Shalayla wouldn’t hear of it. As for Tommy; I think he’s toast, but I’ll defer to you guys on here who are far more experienced about football & coaches than I am. For my two cents?????……..FIRE his ass if he is guilty. OR……treat him like a student and suspend him while the “investigation is on-going!”

  10. deltamyhome says: Feb 28, 2012 8:04 PM

    Jack Schidt did it…know him?

    Please reply if you know…

  11. tigersgeaux says: Feb 28, 2012 10:23 PM

    Say it isn’t so Tommy! Not another “get rich quick scheme”? Shouldn’t Tommy know better? I hear the other shoe dropping. Going, going, going….gone!

  12. burntorangehorn says: Feb 29, 2012 7:41 AM

    Most wise people in that tax bracket invest a lot of money in what are ventures that require their capital, but offer good return opportunities. I guarantee most of the big-name coaches aren’t just maxing out their 401(k) and contributing to post-tax IRAs. The main deal here is that Tubs happened to pick an illegitimate one. I’m inclined to disbelieve willful wrongdoing on his part, but obviously we’ll see some facts come of the case. Most likely there was one or more persons near the top of the scheme who structured the whole business for the purpose of fraud, and Tubs was just duped as the source of seed money.

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