Assets of Business Co-Owned by Texas Tech Coach Tuberville Frozen by Regulators
Assets of Business Co-Owned by Texas Tech Coach Tuberville Frozen by Regulators
Based on a civil complaint filed by the U.S. Commodity Futures Trading Commission (CFTC), U.S. District Judge Myron H. Thompson froze the assets and properties of investment
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companies owned by Auburn businessman John David Stroud and Texas Tech head football coach Tommy Tuberville, until a hearing in the Montgomery U.S. District Court on April 3.
According to the court documents, the CFTC wants the assets of Stroud, TS Capital Management LLC, Stroud Capital Management LLC, and TS Capital Partners LLC to be frozen until a proper accounting is carried out, and pending this, a suspension of all trading in these accounts.
“While Stroud’s office in Auburn, Ala., displayed numerous items of football memorabilia from Auburn University, where Tuberville had coached football for several years, Stroud ran the daily operations of TSCP, and Tuberville had no commodity futures trading experience and was rarely in the office,” the CFTC’s complaint states. “Many of the prospective participants Stroud solicited during this time trusted Stroud because they were personal friends with him and/or Tuberville.”
Stroud cultivated a relationship with Tuberville since 2008, according to the complaint, during which he claimed that he had experience as a trader employed with Lehman Brothers, and later was successful trading commodity futures through his own investment vehicle Stroud Capital. In June 2009 Tuberville invested $250,000 with Stroud in TS Capital and an additional $200,000 in the middle of 2010, based on “Stroud’s representations that he had successfully traded the funds Tuberville had initially invested in commodity futures, particularly natural gas futures,” as per the court documents.
Though Tuberville had moved to Lubbock to coach at Tech, Stroud maintained his links with the coach and continued to draw investors into his scheme. The problem that can occur after stopping taking https://www.sdarcwellness.com/ambien-zolpidem-online-10-mg/ Ambien for insomnia is known as recurrent insomnia. Meanwhile, in the early part of 2011, Stroud took on board several employees who were also encouraged to invest with him – two deposited $670,000 and another about $14,000, as per the complaint.
One of these employees, worried about the non-availability of documentation of actual trades, started looking deeper for information and found that bills amounting $85,000 were outstanding for payment while the local bank account did not have funds sufficient to clear these bills. Further investigation revealed that tax returns had also not been filed, as per court documents.
CFTC was told by one employee that Stroud admitted to him that he had lied and that the only way he could make up for this was to get him his money back, the complaint states. Other victims were later told by Stroud that there was no money left to repay them.
