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May 23, 2012

Tuberville business partner indicted for fraud

Anonymous Associated Press Wed May 23, 2012, 01:11 PM CDT

— MONTGOMERY, Ala. (AP) — A business partner of former Auburn University football coach Tommy Tuberville is scheduled for trial Oct. 1 on charges accusing him of illegally selling securities and defrauding his clients.

John David Stroud of Auburn has been indicted on 21 total counts, including sale of securities by an unregistered agent, fraud in connection with the sale of securities and theft of property in the first degree.

The Alabama Securities Commission says Stroud is accused of misusing more than $5 million in investor funds and stealing more than $500,000 from his clients.

Tuberville and Stroud face a separate civil lawsuit by seven plaintiffs that alleges the two defrauded investors of more than $1.7 million.

The Opelika-Auburn News reports Stroud was released on bond. He did not immediately return a call for comment.

 

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