NBA star sues ex-Screaming Eagle owner

NBA All-Star Tim Duncan is suing the founder of wine investment firm Terroir Capital over claims he was misled on investments for nearly two decades.

Charles Banks, the founder and managing director of a Terroir Capital and former owner of Napa cult winery Screaming Eagle, is being sued by the San Antonio Spurs player over claims he misled him over investments made over a 17-year period.

Seeking damages of at least $1 million, Duncan filed a lawsuit against Banks by Duncan on 29 January in a San Antonio court accusing the financial advisor of breach of fiduciary duty.

Duncan invested in a number of the company’s winery and hotel projects as well as a sports merchandising company, as reported by Bloomberg, which according to court papers are “yet to return much, if anything”.

The complaint claims Banks “encouraged, promoted, hustled and advised Duncan to invest in several wineries and investment funds that he controls”, alleging that Banks used these funds to secure income for himself.

In a statement the sportsman said: “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. 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.”

According to Bloomberg, Duncan accused Banks of defrauding him by persuading him to make a $7.5 million loan to Gameday in 2012, a company Banks controlled, which would be repaid over five years at 12% interest. Duncan claims Gameday failed to make the payments. The company subsequently obtained a $6 million bank loan with what Duncan alleges was his forged signature, the complaint stated.

Charles Banks with his wife Ali

Speaking to Wine Spectator, Banks denied the allegations claiming that Duncan is using the lawsuit as leverage to cash out early on minimum investment periods following his divorce.

Banks said: “It’s completely false. He has been paid. It’s been a good investment for him. He’s made over $2 million since October 2012.”

Banks bought Screaming Eagle in 2004 with real estate magnate Stan Kroenke, but sold his share in the winery in 2009 to set up winery investment group Terroir Capital, leaving Kroenke as the sole owner.

Since founding Terroir Capital, Banks has assembled a portfolio of brands that produce 500,000 cases annually from vineyards owned or managed in California, Oregon, Burgundy, New Zealand and South Africa, including Santa Barbara’s Qupé and historic Napa Valley estate Mayacamas Vineyards.

A court date for the hearing is yet to be set.