Texas Tech football coach Tommy Tuberville and another man are being accused of defrauding seven investors out of nearly $2 million.
A complaint filed last Friday in U.S. District Court says Tuberville and John David Stroud schemed investors out of money and misused assets from eight investment funds founded and controlled by the two men to further their own interests.
It says Tuberville and Stroud "acted contrary to the stated investment strategy" of the funds as they were represented to the plaintiffs.
The initial value of the investments from all seven plaintiffs was more than $1.76 million, according to the complaint. It included $794,480 from one man who followed his initial investment of $60,000 in early 2008 by transferring his IRA into the funds about eight months later.
The plaintiffs are suing for compensatory damages, punitive damages, interest, the right to rescind their investments and court costs.
From 1999-2008, Tuberville coached football at Auburn University in Alabama, leading the program to 85 wins. He was hired by Texas Tech in January of 2010.
The complaint says Tuberville was the subject of a news story in July 2009, while he was away from coaching, in which he is said to be "drumming up business" for a "big-time hedge fund" where he maintained his office.