Former Screaming Eagle owner indicted

Charles Banks, the former owner of Screaming Eagle, has been indicted in federal court on two counts of wire fraud, and could face up to 40 years in prison.

Tim Duncan has accused Charles Banks of defrauding him out of over US$10 million

As reported by Wine Spectator, Banks, founder of winery investment company Terroir Capital, stands accused of defrauding former NBA star Tim Duncan out of more than US$10 million.

Banks appeared handcuffed in court in San Antonio, California, last Friday having surrendered to authorities. Last Wednesday Banks was indicted by a federal grand jury on two counts of wire fraud.

The one time San Antonio Spurs player has accused Banks of duping him out of over US$10 million in investments made by Banks on his behalf over a 17-year period.

Charles Banks and his wife Ali

Seeking damages of at least $1 million, Duncan filed a lawsuit against Banks on 29 January 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, which according to court papers are “yet to return much, if anything”.

The NBA star accused Banks of 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.

In a statement the sportsman said: “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.”

When the lawsuit was filed Banks denied the allegations to WS, claiming that Duncan is using the lawsuit as leverage to cash out early on minimum investment periods following his divorce.

“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,” he told the magazine.

The entrepreneur left court on Friday having posted a US$50,000 cash bond, part of $1 million bail that was set during the short court appearance.

His lawyer, John Murphy, told reporters, “He’s a successful businessman, a family man, a church man. We’re confident that when all the facts come to light, everyone will see there’s another side, and that he’s innocent of these charges.”

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 over a dozen brands that produce 500,000 cases annually from vineyards owned or managed in California, New Zealand, South Africa and Burgundy, including Santa Barbara’s Qupé and historic Napa Valley estate Mayacamas Vineyards.