Gameday Entertainment Chairman of the Board Sentenced to Four Years in Federal Prison for Defrauding San Antonio Victim of Millions of Dollars

In San Antonio today, 49-year-old investment counselor Charles Augustus Banks, IV, an executive with Gameday Entertainment, LLC (Gameday), was sentenced to four years in federal prison for defrauding 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.

In addition to the prison term. United States District Judge Fred Biery ordered that Banks pay $7.5 million restitution and be placed on supervised release for a period of three years after completing his prison term. Judge Biery also ordered Banks, who is currently on bond, to report to federal authorities as early as August 28, 2017, to begin serving his sentence.

According to court records, 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.

On April 3, 2017, Banks pleaded guilty to one count of wire fraud. By pleading guilty, Banks admittedly manipulated the victim into guaranteeing Gameday’s $6 million debt by misrepresenting the true nature of the transaction. Furthermore, Banks failed to fully disclose the commissions, payments and loans he was receiving from Gameday that were specifically tied to these transactions. On June 26, 2013, Banks also caused two pages relating to the $6M loan guarantee and subordination agreements, which contained his victim’s signature, to be faxed from San Antonio to Bank’s employees in California and Comerica bank employees in California.

The FBI conducted this investigation. Assistant United States Attorney Gregory J. Surovic and Tom Moore prosecuted this case on behalf of the Government.