It's been a good few weeks for Tim Duncan.
It was revealed on a podcast last week that the Spurs star recently welcomed the birth of his third child, which is the first with his girlfriend, post-divorce.
Now there are signs that Duncan's former financial adviser may plead guilty in federal court, today, to Wire Fraud charges.
Duncan sued Charles Banks, claiming he was ripped off to the tune of $10 million, linked to a now-bankrupt Gameday Capital Partners Venture Fund, which was a sports merchandiser and event promoter.
According to court papers obtained by 1200 WOAI, the U.S. Attorney’s Office for the Western District of Texas is ready to lay out the facts related to the offense, and how Duncan was ripped off. It includes how Banks knowing devised a scheme to defraud Duncan using false material representations, and how Banks used text messages and faxes to execute the scheme.
Banks, who is an investment adviser and venture capitalist, recruited Duncan to be a client of CSI Capital Management in 1992. In 2007, he left that firm, but still worked with Duncan.
Working as Duncan's investment adviser, he got the star roped into a company called XP Entertainment to the tune of $500,000. XP Entertainment folded in 2009 and Gameday purchased the assets. According to these court papers, almost immediately Gameday needed cash to operate and expand. Banks arranged for Duncan to get a $10 million line of credit at Comercia Bank, and used $7.5 million as a loan. In return, Duncan got interest payments of 12% and was first in line if Gameday went belly up.
This is where the deal went sour.According to court papers, Banks used Duncan to get another loan from Comerica Bank, but this time, the bank would be first in line if Gameday crashed. That was something prosecutors say Duncan was not told.
Text messages between the pair laid out the fraud.
"On the good news front Gameday is crushing. We are changing your 7.5m loan to 6m. Paying it down 1.5m. Sending you an amendment to the loan I need you to send back when you get it. Turning out to be even better than hoped," Banks texted Duncan.
Duncan, in return, expressed surprise."Why are we changing the loan?? If it is crushing, should I get more of the company?? Or at least what was agreed upon?? I'm Confused." he texted back.
Prosecutors say the new loan guarantee agreement was not a modification. Instead, it created a $6 million liability for Duncan. On top of that, Duncan was put further back in line, if Gameday crashed. The feds say Banks knew at the time of the texts that what he was telling Duncan was a lie.
In January, Gameday formally dissolved, and because of what prosecutors lay out in the court papers, the $7.5 million loan made by Duncan to Gameday was in default.
Today, Duncan is still liable for the $6 million loan guarantee to Comerica Bank, which was signed back in 2013.If Banks does plead guilty, Wire Fraud charges normally carry 20 years in prison. It's unclear if a deal has been cut.
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