Tim Duncan Adviser Charged With Fraud

SAN ANTONIO (CN) — A former financial adviser to Tim Duncan has been arrested on charges that he cheated the retired San Antonio Spurs legend out of millions of dollars.

A federal grand jury in San Antonio indicted Charles Banks IV, 49, on two counts of wire fraud related to a $7.5 million investment he encouraged Duncan to make to the sports merchandising company Gameday.

Texas prosecutors allege that Banks, as Chairman of the Board of Gameday, personally benefitted from the investment, and another $6 million loan he persuaded Duncan to make in 2013.

The indictment against Banks, an Atlanta-based investment counselor and venture capitalist, was unsealed Friday. He surrendered to federal authorities in San Antonio that same day and was released after posting 5 percent of the $1 million bail, according to court records.

Also on Friday, the U.S. Securities and Exchange Commission sued Banks for securities fraud violations related to the same deal.

"Banks manipulated the victim into guaranteeing Gameday's $6 million debt by misrepresenting the true nature of the transaction," according to the indictment. "Further, Banks failed to fully disclose the commissions, payments and loans he was receiving from Gameday that were specifically tied to these transactions."

If convicted, Banks faces up to 20 years in federal prison on each count. His arraignment is set for Sept. 20.

"He's a long-term, successful businessman, a family man, a church man," said Banks' criminal defense attorney, John Murphy, to the San Antonio Express-News. "We're confident that when all the facts and circumstances come to light, everyone will see there's another side, and that he's innocent of these charges."

The transaction is also the subject of a lawsuit filed by Duncan last year that accused Banks of misleading the basketball champion in several investments, including the Gameday deal.

Duncan, 40, retired earlier this year after spending his entire 19-year NBA career with the San Antonio Spurs.

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