Tuesday, February 28, 2012

Tommy Tuberville suit connected to Donnan Ponzi scheme?

Current Texas Tech and former Auburn head football coach Tommy Tuberville was named Friday in a $1.7 million lawsuit, alleging that he and another defendant defrauded investors.

Filed in US District Court in Montgomery, the complaint alleges that Tuberville and a partner, John David Stroud, “by use of means or instrumentalities of interstate commerce and by use of the United States
mails: (a) employed devices, schemes, and artifices to defraud Plaintiffs, (b) made untrue statements of material facts and omitted to state other material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, and (c) engaged in acts, practices or courses of business which operated as a fraud and deceit upon Plaintiffs.”

The plaintiffs have demanded their money back, but federal regulators’ review of company accounts shows less than $3,500.

Where’d all that money go?

View the full complaint below.

UPDATE: In July 2011, former Georgia coach Jim Donnan was accused of running a Ponzi scheme. Among those said to have invested with Donnan’s enterprise:

Formed in March 2004, GLC Enterprises, as it was known then, attracted investments from several high-profile figures from the world of sport. Among them are former University of Oklahoma and Dallas Cowboys coach Barry Switzer; Virginia Tech football coach Frank Beamer; Texas State football coach Dennis Franchione; and Texas Tech football coach Tommy Tuberville.

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