On – 31 Mar, 2017 By Robert
Tim Duncan’s former financial advisor is planning to plead guilty to defrauding the retired Spurs star in a multi-million dollar loan-investment deal.
Charles A. Banks IV, 49, of Atlanta, is set to plead guilty to wire fraud Monday in federal court in San Antonio, according to court records and courthouse sources.
Banks, who first met Duncan during his rookie year with the Spurs, is expected to admit that he induced Duncan to sign off on a $10 million loan-investment deal, and subsequent modification.
According to court records, Duncan loaned $7.5 million of a $10 million line of credit, Comerica Bank gave Duncan (and which Banks arranged) to a Colorado sports-merchandising company called Gameday Entertainment LLC that has links to Banks and another NBA star, Kevin Garnett, who retired in September. Among other things, Duncan was told he’d get monthly interest payments at 12 percent annual interest for the loan to Gameday.
In reality, the FBI says, Gameday was still struggling and in need of capital, and the modification — unbeknownst to Duncan — was to allow Gameday to give back $8 million that Garnett reportedly invested. It also let Banks get larger cuts from the overall deal than Duncan had agreed to, according to the court records.
Gameday was dissolved in January, so the $7.5 million Duncan loaned Gameday was in default, and now Duncan can’t collect on it, court records said. And, Duncan is liable for $6 million to Comerica Bank for the loan-guarantee modification, court records said.