At VIFreepBreaking NewsIrregularitiesSports NewsSt. Croix News

Fax Sent To Duncan While He Was Playing An NBA Game Might Be Banks’ Undoing

charles-banks-arrested

ARRESTED: Charles Augustus Banks IV

SAN ANTONIO – A fax to Florida from a former Gameday Entertainment executive to St. Croix’s Tim Duncan has landed 49-year-old Charles Augustus Banks IV in hot water, the FBI said Monday.

Banks has been indicted on two counts of federal wire fraud in what investigators called a scheme to defraud former NBA All-Star Duncan out of millions that went directly into the executive’s pockets, a federal indictment said.

According to the indictment, Banks encouraged his victim to loan Gameday Entertainment $7.5 million in 2012. The suit was filed in U.S. District Court for the Northern District of Georgia, Atlanta Division.

The victim was identified only as “T.D.” in the indictment, but Duncan’s attorney confirmed that the initials refer to his client.

It was a fax sent on June 7, 2013, to Duncan while he was in Florida with the San Antonio Spurs playing the Miami Heat in the NBA Championship, that resulted in the charges, officials said.

Banks, who was chairman of Gameday’s board of directors at the time, sent two unsigned signature pages to Duncan while he was in Florida in connection with a $6 million loan guarantee, the FBI said.

“Banks manipulated the victim into guaranteeing Gameday’s $6 million debt by misrepresenting the true nature of the transaction,” the U.S. Attorney’s Office said in a news release. “Further, Banks failed to fully disclose the commissions, payments and loans he was receiving from Gameday that were specifically tied to these transactions.”

Duncan signed the documents and faxed them back to Banks on June 26, 2013, the release said.

If convicted, Banks could face 20 years in federal prison on each wire fraud charge.

He was released on bond after an initial appearance Monday before U.S. Magistrate Judge John Primomo in San Antonio.

The former financial advisor to NBA star Tim Duncan has been charged with wire fraud after allegedly misappropriating more than $500,000 of client assets.

In January 2015, Duncan filed a lawsuit seeking at least $1 million in damages against Banks, claiming that he had been cheated in his investments.

“Over the course of 17 years, I invested in a series of opportunities presented by Charles Banks, on his assurance that we were working together for my family’s long-term financial security,” Duncan said in a statement released at the time the lawsuit was filed. “Banks exploited my good intentions and our relationship for his personal gain and my substantial loss. I’m saddened that my name will join the list of athletes to fall victim to this sort of misconduct.”

Last summer, Duncan told reporters that he had lost $25 million in investments. The St. Croix native alleged that Banks had “hustled” him to invest in wineries and investment funds.

Banks allegedly persuaded Duncan to invest $7.5 million in a sports team apparel and merchandise company, Gameday Entertainment, falsely telling him that another investor was investing the same amount.

The SEC alleges that Banks told Duncan that $5 million of the $15 million total would be used for the company’s ongoing operations, with the remainder paying off Gameday’s existing bank debt, and that the client would have a first lien position on Gameday’s assets.

Banks allegedly knew that there was no other investor, that the full $15 million would not be raised, and that the bank debt would not be paid off, leaving Duncan without the first lien position he was promised.

Instead, Banks allegedly misappropriated nearly $543,000 from Duncan, taking an origination fee  of $225,000 out of his client’s investment, and siphoning $15,000 from each $75,000 monthly interest payment from Gameday to Duncan for approximately two years.

 duncan-finals_20160912162421728_6017545_ver1-0_640_360

FEDS ON HIS SIDE: St. Croix’s Tim Duncan

http://www.independent.com/news/2016/sep/13/charles-banks-indicted-federal-charges/

 

Previous post

World's Largest Cruise Ship Kills One, Injures Two When Lifeboat Falls During Safety Drill

Next post

Frederiksted Man Says His Car Was Stolen From Him During Crucian Telephone Call

The Author

John McCarthy

John McCarthy

John McCarthy has been reporting on the U.S. Virgin Islands since 1989. He is originally from Detroit, Michigan.

No Comment

Leave a reply

Your email address will not be published. Required fields are marked *

SHARE

Fax Sent To Duncan While He Was Playing An NBA Game Might Be Banks’ Undoing