The following article was written by Spencer Wingate.
Texas Tech coach Tommy Tuberville and John David Stroud are being sued in federal court for allegedly defrauding investors out of more than $1.7 million. The charges stem from the two year hiatus Tuberville took from coaching after leaving Auburn in 2008. According to the lawsuit, Tuberville and Stroud co-founded TS Capital Management. They purportedly led the daily operations of the company even though they were not registered to do business in Alabama. It is alleged that the company essentially acted as a hedge fund with Tuberville and Stroud being responsible for investment direction and capital funding. The plaintiffs claim that Tuberville and Stroud handled the funds and that they intentionally misappropriated said funds. The plaintiffs are accusing the defendants of defrauding and scheming to embezzle their money. Tuberville and Stroud are accused of unjustly altering financial performance statements in the lawsuit. The investors were promised that their funds would be returned; however, none of them have been repaid any money. The plaintiffs seek an undisclosed amount for compensatory damages, punitive damages, interest, court costs, and the right to rescind their investments.
Tuberville’s attorney, Vic Hayslip, stated his client is innocent of the allegations. His statement claimed Tuberville did nothing wrong and never solicited investment funds. Stroud could not be reached for comment. Following a successful first year at Texas Tech in 2010, Tuberville received a one year contract extension and a raise that will pay him $2 million through 2015 – ironically nearly the same amount he is accused of embezzling.