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Tommy Tuberville business partner indicted for fraud

Started by jbcarol, May 24, 2012, 07:02:28 am

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jbcarol

The ont-time (sic) business partner of former Auburn coach Tommy Tuberville pleaded guilty Friday to defrauding his investors out of millions of dollars between 2008 and 2012.

John David Stroud, 42, of Auburn pleaded guilty Friday in Circuit Judge Jacoby A. Walker III's courtroom.


QuoteInvestigators said Stroud took money given to him by investors and used it for personal expenses or for unauthorized business, said Stephen Feaga, deputy director of the Alabama Securities Commission.

Prosecutors argued that Stroud presented himself as a commodities trader and set up several companies in order to get money, raising $5.2 million between 2008 and 2012 .

According to his plea agreement, Stroud will be forced to pay restitution in the amount of $2.1 million to 12 investors...

Feaga said the Alabama Securities Commission has a very experienced law enforcement investigative unit and that they thoroughly investigate every allegation of crime that is brought to their attention and appears to have merit.

"We are satisfied that we did a thorough investigation and that anyone that should have been charged with a crime in this case, based upon the evidence, was charged," Feaga said...

Stroud is also awaiting a trial in a federal lawsuit that names him and Tuberville, who coached the Auburn University football team from 1999 to 2008. Stroud and Tuberville were partners in a number of Auburn-area investment companies. The suit, alleging securities fraud, was filed by seven investors. A trial date has been set the week of Oct. 15 in District Judge Myron Thompson's courtroom.

Stroud will be sentenced on Nov. 18 at 10 a.m. Because investment fraud is a Class B felony, Stroud faces between two to 20 years in prison and fines as high as $30,000. Feaga said he and the Alabama Securities Commission are recommending he be given a 10-year sentence.
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