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Justice News

Department of Justice
U.S. Attorney’s Office
Western District of Texas

FOR IMMEDIATE RELEASE
Friday, September 9, 2016

Gameday Entertainment Chairman of the Board Charged with Defrauding San Antonio Victim of Millions

This morning in San Antonio, Federal Bureau of Investigation special agents arrested Charles Augustus Banks, IV, an executive with Gameday Entertainment, LLC (Gameday), on federal wire fraud charges alleging that he defrauded a San Antonio victim of millions of dollars announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division. 

A federal grand jury indictment unsealed today in San Antonio charges 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 benefitted, 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.

This investigation is being conducted by the FBI.  Assistant United States Attorney Gregory J. Surovic is prosecuting this case on behalf of the Government. 

An indictment is merely a charge and should not be considered as evidence of guilt.  The defendant is presumed innocent until proven guilty in a court of law.

Topic: 
Financial Fraud
Updated September 9, 2016