It claims that Tuberville and John David Stroud, co-founder of TS Capital, “employed devices and schemes” to commit fraud.

Specifically, that Tuberville and Stroud mixed their clients’ assets with their own, failed to file tax returns and falsified various financial statements related to the business.

The 32-page suit alleges that Tuberville and Stroud mixed their clients' assets with their own, failed to file tax returns, falsified client statements, falsified fund performance reports and "generally disregarded and violated customary practices and procedures followed in the hedge fund and security investments industry."

Several plaintiffs, including at least one former employee of TS Capital, have demanded their money be returned, yet, according to the complaint, none of the money invested has been accounted for. The suit also states that investors listed "have reason to believe that most, and possibly all, of their invested funds have been misappropriated, improperly converted and/or squandered."

The Times reports that the seven plaintiffs are from Alabama and Tennessee, and they are seeking damages against TS Capital.

Late last year former employees of TS Capital began questioning the financial management of the company by Stroud and allegedly reached out to Tuberville.