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Doug Jones campaign ad notes Tuberville’s involvement in hedge fund that defrauded investors

Eddie Burkhalter

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A screenshot from an ad from incumbent Sen. Doug Jones.

The campaign for U.S. Sen. Doug Jones on Tuesday released its first ad attacking his opponent’s connection to a fraudulent hedge fund that bilked more than $2 million from several Alabamians who invested in the venture. 

Tommy Tuberville’s partner in the Auburn hedge fund was sentenced to a decade in prison over what has been described in court records as a “Ponzi scheme,” yet Tuberville was never charged – state and federal investigators said that he was also a victim of the fraud – and a civil lawsuit against the former football coach was dismissed after an undisclosed and confidential settlement agreement. 

Tuberville has declined to release the terms of the settlement agreement, but a judge entered a default judgement of more than $7.3 million against Tuberville’s partner, David Stroud, and the business entities the two were partners in. 

“An Alabama teacher, and parents saving for their children’s education, lost everything. Tuberville’s partner got ten years in prison. And Tuberville? You guessed it. He said he didn’t have a clue. But he had the money to settle out of court,” a narrator says in the Jones ad. 

After resigning as head coach of Auburn football in 2008, Tuberville got a $5.1 million buyout, and stayed on as an advisor to the university’s president for a $250,000 annual salary, as he’d worked out in negotiations before resigning, Tuberville said in his deposition. 

Tuberville first met his future partner in TS Capital LLC in New York City in December 2008, during the College Football Hall of Fame banquet, according to a transcript of Tuberville’s deposition in the suit. The day after first meeting him, Stroud sent a car for Tuberville and took him and a friend to visit the trading floor. 

In the following days, Tuberville visited Stroud at Stroud’s office in Auburn, and the two began meeting one another regularly for lunch. Stroud began bringing his family over to Tuberville’s home and took a trip with a group of friends to Jamaica with Tuberville, according to court records. 

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The plaintiffs’ attorney asked Tuberville during his deposition if he’d done any due diligence on Stroud – checked on any possible previous lawsuits or contacted previous employers – and Tuberville said that he had not. 

Tuberville on June 29 made his first investment to Stroud Capital Fund of $250,000 on June 29, 2009, and subsequently invested another $200,000 to TS Capital Partners LLC on July 22, 2010, according to court records. In his deposition Tuberville said he understood that the “T” in TS Capital referred to him and the “S” to Stroud. 

Tuberville soon had an office inside Stroud’s Auburn office, moved some of his sports memorabilia in and business cards were printed, noting Tuberville as a managing partner in the hedge fund, according to court records. The two men were equal partners in TS Capital, and Tuberville was provided a leased BMW, cell phone and health insurance through one of TS Capital’s bank accounts. 

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The Birmingham News published an article titled “Ex-Auburn coach drumming up business for a hedge fund and preparing to tackle role as an ESPN analyst.” 

“I’m not smart enough to understand the numbers,” Tuberville told the Birmingham News reporter, but added that the market can be intoxicating. 

Tuberville became head football coach at Texas Tech in January 2010, and moved there, but there were problems back at TS Capital, and in Sept. 2011, Tuberville got a call from an employee at TS Capital who said that Stroud “wasn’t paying the bills”, according to court records. Concerned investors began calling Tuberville and state authorities kicked off a criminal investigation into TS Capital. 

“Now I hear the state securities commission is coming in to investigate. I hope you have everything in order,” Tuberville texted Stroud on Oct. 19, 2011, according to court records. 

In February 2012, seven investors sued Tuberville, Stroud and the business entities attached to the investments for securities fraud. An eighth investor later joined the civil suit and an amended complaint was filed with the court. 

On May 7, 2012, Stroud was indicted on 21 counts of financial fraud, and on Aug. 23, 2013, pleaded guilty to criminal securities fraud and was sentenced to 10 years in prison. 

U.S. District Judge Myron Thompson on May 7, 2013, granted the plaintiffs’ motion for summary judgement against Stroud and the business entities. 

During his deposition, Tuberville said that he had never solicited investments with Stroud or TS Capital, and that he had only met one of the plaintiffs before the lawsuit was filed and was unaware they had invested with Stroud or TS Capital, and that he thought his white BMW 529i lease and his cell phone were being paid for out of his investment account at TS Capital. 

The Plaintiffs’ attorney showed bank statements that indicated those expenses as coming from TS Capital’s business account, but Tuberville again said he thought the money was coming from his personal investments, according to court records. 

“It came out of TS Capital Partners, LLC.” Tuberville told the plaintiff’s attorney during deposition. 

Tuberville’s attorney filed motions with the court asking the lawsuit be dismissed, but the judge ordered the matter to proceed to trial. Tuberville entered into a sealed settlement agreement with the plaintiffs on Oct. 8, 2013. 

In a response to APR on Tuesday, Stan McDonald, Tuberville’s attorney and campaign chairman, wrote that in 2009, Tuberville lent his name to an investment company.

“It was a big mistake and he’s paid for it. Coach Tuberville was as surprised as anyone to learn Stroud had lost all the money, including Coach’s,” McDonald said. “He never received a dime — it was a dead loss for him and his family between his initial investment, legal fees and eventual settlement. The Lord humbles us on many occasions, and this was such a moment for Coach.”

McDonald’s statement to APR seemed identical to a statement he made to The New York Times for a July 5 article on Tuberville’s connection to the hedge fund. 

Tuberville’s campaign declined to answer APR‘s question as to whether Tuberville would consider releasing the terms of the settlement agreement, however. Stroud has since been released from prison, according to court records. 

Eddie Burkhalter is a reporter at the Alabama Political Reporter. You can email him at [email protected] or reach him via Twitter.

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Alabama Republicans compliment Trump on debate performance

The general election will be on Nov. 3. There are two more debates scheduled in October.

Brandon Moseley

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President Donald Trump, left, and former Vice President Joe Biden, right, are running for president in 2020.

Alabama Republicans said that Republican President Donald Trump demonstrated in Tuesday’s presidential debate in Cleveland that he deserves four more years as president of the United States.

The general election will be on Nov. 3. There are two more debates scheduled in October.

Alabama Republican Party Chair Terry Lathan

Alabama Republican Party Chair Terry Lathan said in a statement: “President Trump swiftly demonstrated that his ‘Promises Made, Promises Kept’ record will continue for four more years. The comparison between the two agendas couldn’t be starker. The President’s record in 47 months compared to Joe Biden’s 47 years in office is monumental. President Trump highlighted many of his policies. Joe Biden shared none of his.”

“The topic of Obamacare was clear on the differences in the debate,” Lathan continued. “President Trump removed the individual mandated healthcare tax, implemented price lists for medical procedures and medicines and has cut drug prices. Joe Biden wants to expand government healthcare as he admitted in the debate. Americans are opposed to more government in their healthcare decisions.”

“The wide difference of opening up states to grow our economy was day and night,” Lathan stated. “President Trump wants to open up our economy, as it is already strongly rebounding, while Joe Biden wants to keep it closed by his own words. Joe Biden said he was against defunding the police, however he earlier said he was for defunding them and wanted to use the money in the community instead. He also couldn’t name any first responder groups who have endorsed him while President Trump has a large number of endorsements across the nation. Clearly, this shows where the law enforcement communities stand as the President has stood with them.”

“The President moved quickly with a massive response to the COVID pandemic. He shut down travel with China early on over Democrat objections, including Joe Biden, and instituted ‘Operation Warp Speed’ that is now producing rapid testing and vaccines,” Lathan stated. “Joe Biden said he would do what has already been done by President Trump when pushed on his plan. President Trump made a strong case why he and the U.S. Senate should move swiftly to fill the U.S. Supreme Court vacancy with highly qualified jurist Amy Coney Barrett. Joe Biden continues to hide his list of potential Supreme Court nominees and would not agree to address ‘packing’ the Supreme Court when directly asked.”

“President Trump rejected the radical environmental ‘New Green Deal’ while Joe Biden said he did too, however Mr. Biden is on record embracing it – multiple times,” Lathan said. “He is all over the place on this left-wing AOC agenda. Joe Biden wants to count votes days after they come in past November 3rd as he admitted in the debate. Laws of states prohibit this chaos and courts are stopping it on a daily basis. Americans want someone who will fight for them to keep our country safe and great. President Trump showed tonight he’s a heavyweight fighter who has been putting America first. That’s why President Trump will win re-election on November 3rd.”

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Congressional candidate Barry Moore

“Joe Biden has 47 years of experience at dodging, evading and just flat-out refusing to answer questions on real issues, and it showed during the debate,” Congressional candidate Barry Moore said. “For decades, he’s made a career of empty platitudes, vague accusations and deliberate misstatements, and that was what we saw Tuesday on stage. Joe Biden did everything short of walking off stage to keep from giving specifics about what he will do as President, except for eliminating the Trump tax cuts and raising our taxes to finance his party’s radical agenda. Mr. Biden did that because he’s a politician to the core and that’s what he’s done for his entire career.”

“Donald Trump, on the other hand, doesn’t act like a politician even after nearly four years as President,” Moore continued. “He answered questions directly with facts about his record, and didn’t let Joe Biden get away with his usual waffling, lies, and empty promises. The President’s personal style is confrontative, and I understand that some people don’t like that. But, I also know many, many people who welcome Donald Trump’s standing up to the bullies of the Left, and he did a great job confronting Joe Biden with Biden’s own statements and record.”

“The American people have a clear choice: a man who’s spent nearly half a century as a politician and accomplished little or nothing, or a President who gave us three years of booming economy and is leading us during this pandemic with confidence and conviction,” Moore concluded. “Donald J. Trump is clearly the best choice to be our President for the next four years.”

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Moore is the Republican nominee in Alabama’s 2nd Congressional District. Moore faces Democratic nominee Phyllis Harvey Hall for the seat currently held by Congresswoman Martha Roby, R-Alabama.

Trump Victory Finance Committee member Perry Hooper Jr.

“The Liberal News media is saying that Biden won the Debate,” said Trump Victory Finance Committee member Perry Hooper Jr. “I thought the President won the Debate on the issues.”

“I enjoyed hosting a Trump Debate Watch Party last night. Country music Artist And Runner Up Miss Alabama performed for us before the Debate,” Hooper added. “She sang The National Anthem, Proud to be an American and Eye of the Tiger. Everybody says that the President won the debate but they also are saying he was to aggressive. Come on friends, Trump was Trump and that why we like him. I think the President killed Biden when Biden could not denounce violence and antifa. He hasn’t even called the Democrat Governors and asked them to stop the violence. It’s plain and simple that Biden is beholding to the Left Wing.”

National Federation of Republican Women President Ann Schockett

“President Trump clearly demonstrated how he has accomplished more in 47 months than his opponent has in 47 years of being a career politician,” National Federation of Republican Women President Ann Schockett said. “The President successfully highlighted an historic record of promises kept for the American people and strongly articulated a clear case for guiding our nation to even greater heights during a second term. He emphasized his efforts to combat the pandemic, reignite the economy, champion our first responders and military, uphold the rule of law, and nominate exceptional Supreme Court justices.”

“Joe Biden, as vice president, had presided over the worst economic recovery since the Great Depression and has little to show for decades spent in Washington D.C.,” Schockett continued. “He evaded questions and offered misleading rhetoric to conceal his true agenda of dangerous radical proposals that would wreck our economy, destroy American jobs, undermine our energy independence, and dismantle and destroy our Constitution and country.”

“Affirming the President’s words during the debate that we have to go back to our core values of our country, the NFRW is confident that four more of years of Donald Trump will bring a thriving economy and safer communities,” Schockett concluded. “He is a President who defends our rights and freedoms, loves our country, and embraces what makes America exceptional. Our NFRW army is hard at work getting out the vote for President Trump and our Republican candidates. We’re ready for Election Day.”

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The first presidential debate was held Tuesday

Below are some key moments from the debate.

Brandon Moseley

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President Donald Trump, left, and former Vice President Joe Biden, right, are running for president in 2020.

The first presidential debate was held in Cleveland, Ohio, on Tuesday between President Donald Trump and Vice President Joe Biden.

Below are some key moments from the debate. The two candidates bitterly disagreed on what would happen in the election due to the unprecedented amount of mail in election ballots.

Two more debates are planned before the Nov. 3 general election.

On Trump’s Supreme Court nomination

“Elections have consequences, we have the Senate, and we have the White House,” Trump said. “She is outstanding. … We won the election, and we have the right to do it.”

“The American people have a right to say who that nominee is,” Biden said. “We should wait and see what the outcome of this election is.”

“Are you going to pack the court, Joe?” Trump asked.

“I am not going to answer that,” Biden replied.

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On the Democratic health care reform plan

“Your party is socialist,” Trump said of the Democratic health reform plan.

Biden said that the public option was just for those that qualify for Medicaid.

“It is only for people who qualify for Medicaid. The vast majority of the American people would not be in that option,” Biden said. He denied Trump’s charge that the Democratic health care plan was socialist.

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“I am the Democratic Party,” Biden said. “The platform is what I say it is.”

On the Republican health care reform plan

“We are going to let our governors go to other countries to buy drugs,” Trump said of his plan to reform health care.

“Everything he is saying tonight is a lie,” Biden said. “He is a liar, everyone knows it.”

“I want to give them better health care at a better price,” Trump said. “Obamacare was not good. We got rid of the individual mandate.”

“He has no plan for healthcare,” Biden said. “Like everything else he is talking about, he does not have a plan.”

On the coronavirus pandemic

“200,000 dead, over 7 million are infected,” Biden said of the COVID-19 crisis. “The president has no plan.”

“We should be providing the money the House has passed so businesses can stay open,” Biden said. “You need to get out of your bunker, get out of your sand trap.”

“The governors said I did a phenomenal job, most of them said that,” Trump said. “We are weeks away from a vaccine. Therapeutics are already underway.”

“I have spoken to the companies, and we can have it a lot sooner,” Trump said of when the vaccine will be available.

“I have spoken to the scientists, and they will have a vaccine real soon,” Trump said.

Biden criticized Trump’s campaign rallies.

“He has been totally irresponsible, the way that he has handled the crowds, the way that he has handled the social distancing,” Biden said.

“We built the greatest economy in the world. We shut it down because of the China plague,” Trump said. “They have got to open these states up. It is very sad what is going on with divorce and alcoholism.”

“He is going to be the first President in American history to leave office with fewer jobs than when he became President,” Biden said. “You can’t fix the economy until you fix the COVID crisis.”

On Trump’s tax returns

Trump claimed that he paid millions of dollars in taxes in 2016 and 2017 when asked about a New York Times story that showed he paid just $750 in federal income taxes.

“You are the worst President America has ever had,” Biden said.

“I have done more in 47 months than you have done in 47 years,” Trump replied.

Trump said that Biden was not smart and finished last in his college class.

On the economy

“My economic plan would create seven million more than his plan would and would create a trillion more in growth,” Biden said.

Biden said that he wanted to raise the corporate tax rate to 28 percent from the current 21 percent.

“You will lose half the companies that poured in and will have the greatest depression you have ever seen,” Trump responded.

On crime rates, protests and racial justice

“We believe in law and order, and you don’t Joe,” Trump said.

“Violence in response is never appropriate,” Biden said of some Black Lives Matter protests that have turned violent.

“What I support is the police have the opportunity to deal with the problems that they face, and I totally oppose defunding the police,” Biden said.

“Name one law enforcement group that supports you,” Trump said.

Trump when asked if he would condemn racists and white supremacists, said “yes.” But when asked about the Proud Boys, he said that they “should stand back and stand by,” adding a qualifier that most of the problems are coming from the far left.

Biden called Trump a racist and accused of using 1950s racist dog whistles.

On who should win and why

“There has never been an administration or a president that has done more than I have done in three and a half years,” Trump said of why he should be re-elected.

“Under this President we have become weaker, sicker, poorer, and more violent,” Biden replied.

On climate change

“As far as the fires, you need forest management,” Trump said when asked if climate change was causing forest fires in the West. “If you had good forest management you wouldn’t be having that problem.”

“We can get to net zero energy production by 2035 while still creating jobs,” Biden said.

“That is more money than our country could make in one hundred years,” Pres. Trump said of Biden’s environmental plan.

“The Green New Deal is not my plan,” Biden replied. “The Biden plan is different from what he calls the Green New Deal.”

Biden said that he would get the U.S. back into the Paris Climate Accords.

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Alabamians request more than 101,000 absentee ballots with 30 days left to apply

So far, 35,184 absentee ballots have been successfully returned for the general election.

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(APR GRAPHIC)

At least 101,092 absentee ballots have been requested so far in Alabama according to Secretary of State John Merrill, with just 30 days left to apply for an absentee ballot for the Nov. 3 General Election. So far, 35,184 absentee ballots have been successfully returned for the general election.

In order to protect the safety and well-being of voters, Merrill is encouraging those who are concerned about contracting or spreading the coronavirus to apply for and cast an absentee ballot.

Absentee ballot applications can be downloaded online or requested by visiting or calling your local absentee election manager’s office.

Voters may also contact the Secretary of State’s office at 334-242-7210 to request an absentee ballot application.

Due to the declared states of emergency, any qualified voter who determines it is impossible or unreasonable to vote at their polling place shall be eligible to check the box on the absentee ballot application that is most applicable to that individual. In the case none of the boxes are appropriate, voters can check the box which reads, “I have a physical illness or infirmity which prevents my attendance at the polls. [ID REQUIRED]”

For the Nov. 3 General Election, the deadline to register to vote is Monday, Oct. 19, the deadline to submit an absentee ballot application is Thursday, Oct. 29, the deadline to return an absentee ballot to the absentee election manager is the close of business Monday, Nov. 2, and the last day to postmark an absentee ballot is Monday, Nov. 2.

Voters who are eligible to vote pursuant to the Uniformed and Overseas Absentee Voting Act will have until Tuesday, Nov. 3 to postmark an absentee ballot.

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Voters concerned about COVID-19 are encouraged to select the box on the affidavit, which accompanies the absentee ballot, which reads as follows: “I am physically incapacitated and will not be able to vote in person on election day.”

Due to recently witnessed delays with the U.S. Postal Service, Merrill encourages voters interested in returning their ballot by mail to go ahead and make application for their absentee ballot. As a reminder, Merrill worked with the Legislature last year to pass Act 2019-507, allowing voters the opportunity to return their absentee ballot by commercial carrier in addition to U.S. mail.

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First presidential debate is tonight

Tuesday’s debate, set to begin at 8 p.m. CST, will be moderated by Fox News Sunday anchor Chris Wallace.

Brandon Moseley

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President Donald Trump, left, and former Vice President Joe Biden, right, are running for president in 2020. (STAFF SGT. TONY HARP/AIR NATIONAL GUARD AND GAGE SKIDMORE/FLIKR)

President Donald Trump and former Vice President Joseph Biden, the Democratic nominee for president, are preparing for Tuesday night’s debate.

Tuesday’s debate will be moderated by Fox News Sunday anchor Chris Wallace. The debate will be at 8 p.m. CST and is being hosted at Case Western Reserve University and the Cleveland Clinic in Cleveland, Ohio.

Due to COVID-19, the two candidates and the moderator will not shake hands. There will be a small number of ticketed guests inside the debate hall, along with debate officials, crews and TV network anchors including Fox News.

Trump has prepared with help from former New Jersey Governor Chris Christie and former New York City Major Rudy Giuliani but has chosen not to have traditional lengthy practice sessions.

Trump is suggesting he doesn’t want to overdo it.

“Sometimes you can go too much in that stuff,” Trump told reporters on Sunday.

Biden has been holding mock debate sessions with senior adviser Bob Bauer and top aides, according to CBS News.

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“I’m prepared to go out and make my case as to why I think he’s failed and why I think the answers I have to proceed will help the American people, the American economy and make us safer internationally,” Biden said.

“The president prepares by being president,” Trump campaign communications director Tim Murtaugh reportedly said. “And by regularly facing hostile news media. That’s pretty good practice by any measure.”

The debate as to whether Trump should have appointed Judge Amy Coney Barrett to fill the vacancy on the Supreme Court created by the death of Ruth Bader Ginsburg will almost certainly come up.

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“Joe Biden spent a lot of time in his basement to study up,” said Lara Trump, the president’s campaign adviser and daughter-in-law. “He’s been in this game for 47 years. I assume he’ll do OK. Quite frankly, the bar has been lowered so much for Joe Biden that if he stays awake for the whole thing it’s like maybe he won.”

The two candidates are running very different campaigns.

From March until the last week in August, according to news reports, Biden made no in-person speeches or campaign appearances. Biden’s events since have been rare and attended by just a few invited guests.

Trump, on the other hand, has been holding mass campaign rallies. Trump has held 14 in-person rallies in September including in swing states New Hampshire, Michigan, Wisconsin, Nevada, Florida, Virginia and Minnesota with multiple trips to Ohio, North Carolina and Pennsylvania.

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