Former Auburn University football coach, Tommy Tuberville, needs some tips on picking out friends and business partners. His current friend and business partner has been indicited on federal fraud charges.
John David Stroud, a business partner of former Auburn University football coach Tommy Tuberville, will be tried on October 1 on charges he sold financial products without a license and misused millions of dollars of his client’s money.
On May 7, Stroud was indicted on a total of 21 counts, which included selling securities as an unregistered agent, fraud in connection of those sales and theft of property in the first degree.
Tuberville was not charged in this criminal case, however he and Stroud face a separate civil lawsuit that alleges the two defrauded investors out of more than $1.7 million. The seven plaintiffs in this case are from Arkansas, Alabama and Tennessee.
Both men have denied any wrongdoing, and Stroud denies that Tuberville was involved in the dealings that led to the civil lawsuit.
Tommy Tuberville was Auburn’s head coach from 1999 to 2008, and he is currently the head coach at Texas Tech University.
Stroud acted as an unregistered securities agent, according to the Alabama Securities Commission, between February 2008 and October 2011. During this time, court documents allege he used money from new investors to pay purported returns to old investors. The suit claims he used about $5.2 million in investments to pay for his personal expenses and that he stole more than $500,000 from ten investors.
Stroud was arrested on May 15 according to the Alabama Securities Commission. He was transported to the Lee County Detention Center on May 16, where he bonded out, reported the Opelika-Auburn News.
The court records do not show whether Stroud has an attorney representing him on these criminal charges.