Tim Duncan's Former Financial Adviser Indicted on Federal Wire Fraud Charges

Charles Banks, who's alleged to have mishandled more than $20 million of investments by former San Antonio Spurs forward Tim Duncan, will reportedly be indicted on two counts of wire fraud Friday. 

Adrian Wojnarowski of The Vertical reported Duncan filed a lawsuit against Banks, who's expected in court Friday for the unsealing of the wire fraud indictment, last year stating he misled him while serving as an adviser to the recently retired basketball player.

Duncan told Scott Soshnick of Bloomberg in June 2015 he lost over $20 million as part of failed investments. He alleged Banks suggested those deals to him without identifying a potential conflict of interest since the adviser was also involved in the opportunities.

"Luckily I had a long career and made good money," Duncan said. "This is a big chunk, but it's not going to change my life in any way. It's not going to make any decisions for me."

"I originally filed my lawsuits against Charles Banks to stop him from doing to others what he had done to me and my family," Duncan said, per Wojnarowski. "The U.S. Dept. of Justice has just taken a big step in exposing and stopping his illegal activities. I thank the U.S. Attorney's office and FBI for working tirelessly to bring Banks to justice."

Banks' lawyers filed a motion in August 2015 denying Duncan's claims. Guillermo Contreras of the San Antonio Express News noted the motion stated the longtime Spurs star was made aware of all of the details involved in the transactions:

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But, the facts belie Duncan's claim. While Duncan's attorneys claim Duncan did not keep copies of his documents, others did. A painstaking search through voluminous documents reveals that Duncan was in fact sent complete copies of the offering documents, including … private placement memoranda, investor questionnaires, and subscription agreements in all three of the Terroir-family funds in which he purchased limited partnership interests: Hotel Fund I, Hotel Fund II, and the Winery Fund.

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The FBI investigated the case for a year before the evidence was presented to a grand jury Wednesday, according to Contreras. The report also noted Banks "surrendered to federal marshals at the federal courthouse" when he arrived Friday morning.

The two counts of wire fraud are only related to the portions of the original lawsuit that can be handled in the San Antonio jurisdiction, per Contreras. U.S. District Judge Xavier Rodriguez previously divided the case, suggesting claims made concerning a $7.5 million investment loan be moved to Colorado.

Duncan, whose relationship with Banks dates back to his 1997-98 rookie season, told Bloomberg he hoped his story would become a learning experience for young athletes.