Gameday Entertainment Chairman of the Board Charged Defrauded Victim of Millions

Gameday Entertainment Chairman of the Board Charged Defrauded Victim of Millions

On Friday morning in San Antonio, Charles Augustus Banks, IV, an executive with Gameday Entertainment, LLC, was arrested by Federal Bureau of Investigation special agens on federal wire fraud charges alleging that he defrauded a San Antonio victim of millions of dollars.

A federal grand jury indictment unsealed on Friday in San Antonio charged the 49-year-old investment counselor and venture capitalist with two counts of wire fraud. According to the indictment, Banks encouraged the victim to loan $7.5 million to Gameday in 2012. Subsequently, Banks encouraged the victim to personally guarantee another $6 million loan made to Gameday by Comerica Bank in 2013. During this time frame, Banks was Chairman of the Board of Gameday and personally benefited, in the form of millions of dollars in loans and commissions, from the proceeds of these loans made to Gameday. Banks manipulated the victim into guaranteeing Gameday’s $6 million debt by misrepresenting the true nature of the transaction. Further, Banks failed to fully disclose the commissions, payments and loans he was receiving from Gameday that were specifically tied to these transactions.

In carrying out his scheme to defraud, the indictment specifically alleges that on June 7, 2013, Banks caused two unsigned signature pages to be faxed from California to the victim in Florida relating to a $6M loan guarantee and subordination agreements, then caused the signed signature pages to be faxed from San Antonio back to Banks’ employees and Comerica bank employees on June 26, 2013.

Banks faces up to 20 years in federal prison upon conviction of each wire fraud charge. Banks was released on bond following his initial appearance before U.S. Magistrate Judge John Primomo in San Antonio today.

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