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Despite fraud charges, Charles Banks still in wine business
Sep 16, 2016
(SFChronicle) - The arrest last week of prominent winery investor Charles Banks on fraud charges has called into question the fate of his California wine empire.
A federal grand jury indicted Banks in Texas Friday for allegedly defrauding former pro basketball player Tim Duncan, whom he had long served as a financial adviser. Later that day, the Securities and Exchange Commission filed a complaint against Banks on related charges in federal court in Atlanta.
Duncan filed two lawsuits against Banks in 2015, alleging that Banks’ bad advice had cost him $20 million. Duncan’s money went into Terroir Capital, an investment vehicle that consists of two funds, one for wineries and one for hotels, and in a sports merchandising company, Gameday Entertainment, where Banks is a part owner and the chairman of the board.
But the Terroir funds, which Banks founded and still runs as managing partner, are conspicuously absent from the indictment and the similar complaint from the SEC. Both documents address only the Gameday deal.
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