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Sessions: Tuberville’s fraud scandal “can’t just be swept under the rug”

Jeff Sessions criticized Tuberville’s actions as a “major fraud scheme that bilked large sums of money from hardworking people,” which “can’t just be swept under the rug.”

Brandon Moseley

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GOP Senate candidates Jeff Sessions (left) and Tommy Tuberville (right).

After The New York Times published an investigation into a financial fraud scandal involving Republican Senate candidate Tommy Tuberville, his opponent, former Republican Sen. Jeff Sessions, criticized Tuberville’s actions as a “major fraud scheme that bilked large sums of money from hardworking people,” which “can’t just be swept under the rug.”

“This is an astounding story,” Sessions said. “Based on the facts already uncovered, it is clear that Tommy Tuberville was one of two partners in a major hedge fund fraud scheme that bilked large sums of money from hardworking people, including Alabamians.”

Tuberville’s partner was sentenced to 10 years in prison for the scheme by the court in Opelika, while Tuberville was sued for fraud, paying out a sum of money in a private settlement that has been kept out of the public eye.

“This can’t just be swept under the rug, and Tuberville can’t just brush it aside by falsely claiming he was some innocent victim,” Sessions said. “Indeed, he was a victimizer and held himself out as the ‘managing partner’ of the firm. Tuberville must give a full and complete accounting of this scandal. The people of Alabama deserve to know the complete truth now, before the election, about the man who is asking to be their senator.”

This scandal has been widely talked about in Republican circles for months or longer, but The New York Times article details the allegations for one of the first times in the national spotlight.

Tuberville became a full partner in a hedge fund with former Lehman Brothers broker John David Stroud. Their ventures included TS Capital Management and TS Capital Partners. The T stands for Tuberville and the S for Stroud.

Tuberville did not pick which stocks to buy or sell, and as the head football coach at Texas Tech University and later at the University of Cincinnati, he was not even a frequent presence in the office. Tuberville introduced Stroud to potential investors and even had business cards identifying himself as managing partner. He also leased a BMW and got his health insurance through the company.

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The firm’s offices in Auburn were filled with his coaching memorabilia. In 2010, he traveled to New York with Stroud to meet potential brokers, and was kept in the loop on decisions about hiring. A source told APR that a number of SEC coaches were among the people defrauded by TS Capital.

When the money was all lost, Stroud was sentenced to 10 years in prison and Tuberville was sued by the investors for fraud and failure to carry out his fiduciary duties. Tuberville reportedly lost $450,000 of his own money and then had to pay out more than $1 million to the investors. The New York Times reported that his total losses were more than $2 million.

The financial scandal has many Republicans concerned about the viability of Tuberville’s general election campaign to unseat incumbent Sen. Doug Jones, D-Alabama.

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“I think that Tuberville did not do anything wrong,” said Rev. John Killian, a conservative activist. “He is a good man, but the Doug Jones campaign, they would use this to the ninth degree.”

“They will shoot Tuberville up in 30 second and 60 second TV spots,” Killian added. “I don’t think Tuberville is crooked, but Doug Jones has $10 million to spend. I think they are lying in wait for Tuberville like they were for Roy Moore.”

Killian said that he will support Tuberville if he wins the Republican nomination, but that he is supporting Jeff Sessions in the primary because he is the strongest general election candidate to face Jones.

Tuberville supporter and Trump Victory National Committee member Perry Hooper Jr. was dismissive of assertions that Tuberville could be vulnerable.

“Coach has a commanding lead. He will win the run-off, and he will crush Doug Jones in the general election in November,” Hooper told APR.

Tuberville maintains that he was a victim of the fraud — not a perpetrator.

“They sued me because I invested in it, and he used my name to get other people to put money in,” Tuberville said. “There was nothing ever implicated by anybody that I’d done anything wrong. I felt bad that he used my name.”

The New York Times has asked Tuberville to release the plaintiffs from their confidentiality agreement. Tuberville to this point has declined. Stroud has been released from prison but has not commented on his relationship with Tuberville. Tuberville faces Sessions in the July 14 Republican runoff.

President Donald Trump has endorsed Tuberville, and Tuberville is leading Sessions in most available polling.

Brandon Moseley is a senior reporter with eight and a half years at Alabama Political Reporter. You can email him at [email protected] or follow him on Facebook. Brandon is a native of Moody, Alabama, a graduate of Auburn University, and a seventh generation Alabamian.

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Elections

Alabama GOP chair says Harris “drags the Democrats’ ticket even further to the left”

Brandon Moseley

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U.S. Sen. Kamala Harris speaking with attendees at the 2019 National Forum on Wages and Working People. (VIA GAGE SKIDMORE/FLIKR)

Tuesday, Alabama Republican Party Chairman Terry Lathan released a statement critical of presumed Democratic presidential nominee former Vice President Joe Biden’s choice of U.S. Senator Kamala Harris (D-California) as his running mate in the November 3 general election. Biden announced the pick to supporters via text message.

“Joe Biden’s VP pick drags the Democrats’ ticket even further to the left,” Lathan charged. “Kamala Harris was the first proud co-sponsor Bernie’s Medicare for All government healthcare takeover. She’s applauded efforts to defund the police and even led the charge to block meaningful police reform in the Senate. She even wants to use the federal government to ban plastic straws and to control what we eat – a move that would devastate the U.S. dairy and beef industries – all in the name of ‘climate change’.”

“We look forward to the clear contrast in policies in the Vice Presidential debate with Mike Pence and Senator Harris,” Lathan concluded. “It will be a true mirror of the obtuse plans the Democrats want for our nation. This ticket does not represent the values of the American people. They will see through all bogus attempts by the Democrats who will pretend to move to the center. They will fail, as their policies have, and America will vote to re-elect President Trump on November 3rd.”

Republican National Committee Chair Ronna Romney McDaniel similarly blasted the decision.

“A hiding, diminished, & incoherent Biden didn’t just select a VP candidate, he chose the person who will actually be in charge if he were somehow able to win,” Chair McDaniel said. “Harris’ radical policies may be popular among liberals, but they are well outside the mainstream for most Americans.”

“Kamala Harris’ extreme positions, from raising taxes to abolishing private health insurance to comparing law enforcement officials to the KKK, show that the left-wing mob is controlling Joe Biden’s candidacy, just like they would control him as president,” McDaniel concluded.

Harris is a U.S. Senator, former 2020 presidential candidate, and former California Attorney General. Her father is an immigrant from Jamaica and her mother is an immigrant from India. She identifies as Black and is the first non-White woman to be on a major party presidential ticket. Harris is the fourth woman to appear on a major party presidential ticket. The previous nominees: 1984 Democratic VP candidate Geraldine Ferraro, 2008 Republican VP candidate Sara Palin, 2016 Democratic presidential candidate Hillary Clinton all lost in the general election.

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Current Vice President Mike Pence is expected to return as President Trump’s running mate.

Biden is expected to make a joint appearance with Harris on Wednesday in Delaware.

Polls taken prior to the Harris pick show Biden with a significant lead in polling, both nationally and in several key swing states. Alabama is expected to support Trump by a large margin.

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Elections

Barry Moore: Trump “is doing what he can to counteract the Democrats stonewalling”

Brandon Moseley

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Congressional candidate Barry Moore.

Monday, congressional candidate former State Rep. Barry Moore, R-Enterprise, said that the President is doing what he can to counteract the Democrats stonewalling.” Moore is referring to President Donald J. Trump’s (R) recent executive orders extending unemployment payments, student loan relief, protection from eviction and a payroll tax exemption for persons making less than $100,000 a year.

“I’m glad that this President is once again showing his leadership during this crisis,” Rep. Moore said in a statement. “These executive orders show that he’s doing what he can to counteract the Democrat’s stonewalling. The American people need more relief from the effects of the ongoing pandemic, and it’s obvious that Nancy Pelosi, Chuck Schumer and the rest of the Democrats in Congress care more about playing political games and funneling taxpayer money to their cronies than helping the people.”

“The Democrats keep insisting on extending the full $600 per week unemployment benefit despite the Congressional Budget Office saying it will only hurt the economy starting early next year,” Moore continued. “They also keep adding more and more of their progressive wish-list to the deal. Last week it came out that they’re insisting on solar, wind, and other green energy tax credits in the relief bill. What does that have to do with the COVID pandemic? Nothing, except to satisfy their liberal supporters and their anti-American agenda.”

The President signed four executive orders on Saturday granting a $400/week extension in unemployment benefits as well as extending the initial 120-day protections from eviction for renters and homeowners that were initially part of the CARES Act passed in April. Additional orders set student loan interest rates to zero and suspended federal student loan payments through December 31, 2020, and defers payroll taxes for employees making less than $100K a year from September 1 through December 31 of this year.

“I am so thankful that President Donald Trump is standing firm against Pelosi’s and Schumer’s attempt to hold the American people hostage, and I look forward to joining the next Congress to help him resist the Democrat’s agenda,” Moore concluded.

Barry Moore is the Republican nominee for House District 2. He faces Democrat Phyllis Harvey-Hall in the November 3 general election. Incumbent Congresswoman Martha Roby, R-Montgomery, is not seeking re-election.

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Congress

AFL-CIO endorses Adia Winfrey for Congress

Brandon Moseley

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Congressional candidate Adia Winfrey. (VIA WINFREY CAMPAIGN)

Democratic congressional candidate Adia Winfrey’s campaign announced Monday that she has received the endorsement of the Alabama AFL-CIO in Alabama’s 3rd Congressional District.

At their annual convention last week, union leaders from across the state recognized Winfrey’s “passion, ability to lead and attentiveness to the issues affecting working men and women” as reasons to endorse the Democratic challenger against incumbent Congressman Mike Rogers, R-Alabama.

“Labor unions have long been a leading force in our nation’s economy,” Winfrey wrote. “Workplace safety standards, employee benefits, equal pay for women, non-discrimination policies and so much more can be attributed directly to union members who were willing to speak up for what is right. I look forward to being a voice for Alabama’s hard-working men and women in Congress.”

Winfrey is challenging Rogers, a nine-term incumbent, in the Nov. 3 general election. During his 18 years in Congress, Rogers has earned only a 16 percent lifetime rating by the AFL-CIO for his votes.

“For seven generations, my family has called Talladega, Alabama, home,” Winfrey said. “I am the mother of four amazing children, a doctor of psychology, author, founder of the H.Y.P.E. (Healing Young People thru Empowerment) Movement, and … I am running for Congress in Alabama’s 3rd Congressional District! I believe in the future of our beautiful state and nation. It is time for leadership with a new vision which is #FocusedOnAlabama.”

Winfrey has a bachelor’s degree in psychology from Wilberforce University and a doctorate of clinical psychology degree from the Wright State University School of Professional Psychology.

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Courts

Plaintiffs ask for panel of judges to reconsider ruling on Alabama voter ID law

Eddie Burkhalter

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(STOCK PHOTO)

Plaintiffs suing Alabama Secretary of State John Merrill alleging the state’s voter ID law discriminates against minorities on Monday asked a panel of judges to reconsider an appeals court decision that affirmed the law. 

The NAACP Legal Defense and Educational Fund on Monday filed a petition Monday asking that all of the judges on the Eleventh Circuit Court of Appeals reconsider the July 21 decision by a panel of three judges that fell 2-1 in favor of the state’s voter ID law. 

The 2011 law requires voters in Alabama to show a valid, government-issued photo ID to vote. The NAACP, Greater Birmingham Ministries and several minority voters sued, arguing that lawmakers knowingly crafted the law to prevent Black people and other minorities, who are less likely to have such photo IDs, from voting. 

The three-judge panel of the 11th Circuit Court of Appeals in its July 21 opinion found that the burden of Alabama’s voter ID law is minimal, and does not“violate the Fourteenth and Fifteenth Amendments of the Constitution, nor does it violate the Voting Rights Act.”

Merrill has argued that the state’s voter ID law is meant to deter in-person voting fraud and that the state makes available mobile photo ID units able to provide voters with the necessary IDs.

District Judge Darrin Gayles in his dissenting opinion wrote that voter fraud in Alabama is rare, and that “while there have been some limited cases of absentee voter fraud, in-person voter fraud is virtually non-existent.”

Gayles wrote that Merrill presented evidence of just two instances of in-person voter fraud in Alabama’s history.

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“Despite the lack of in-person voter fraud, Secretary Merrill claims Alabama enacted the Photo ID Law to combat voter fraud and to restore confidence in elections — a dubious position in light of the facts,” Gayles wrote.

Gayles noted that former State Sen. Larry Dixon, R-Montgomery, before his retirement in 2010, sponsored similar voter ID bills.

“During this time, Senator Dixon made repeated comments linking photo identification legislation to race, including ‘the fact you don’t have to show an ID is very beneficial to the Black power structure and the rest of the Democrats’ and that voting without photo identification ‘benefits Black elected leaders, and that’s why they’re opposed to it,'” Gayles wrote in his dissenting opinion.

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“It is clear from the statements of the legislators who enacted Alabama’s photo ID law that they passed it for the unconstitutional purpose of discriminating against voters of color,” said LDF senior counsel Natasha Merle in a statement Monday. “As long as this law is intact, Black and Latinx Alabamians will continue to be disproportionately excluded from the state’s electoral process.”

Attorneys in the filing Monday told the court that “roughly 118,000 Alabamians lack qualifying photo ID, and Black and Latinx voters are twice as likely to lack qualifying ID as compared to white voters. Given this evidence, a trial was required to determine whether HB19 violates the Fourteenth and Fifteenth Amendments.”

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