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Sunday, April 9, 2017

Gameday Entertainment Chairman of the Board Pleads Guilty to Defrauding San Antonio Victim of Millions of Dollars

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

FOR IMMEDIATE RELEASE
Monday, April 3, 2017

Gameday Entertainment Chairman of the Board Pleads Guilty to Defrauding San Antonio Victim of Millions of Dollars

In San Antonio today, 49-year-old Charles Augustus Banks, IV, an executive with Gameday Entertainment, LLC (Gameday), admitted to 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.

According to the superseding indictment in this case, 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.

Appearing before United Stated District Judge Fred Biery this morning, the 49-year-old investment counselor pleaded guilty to count two of the superseding indictment pending against him--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.

Banks remains on bond pending sentencing scheduled for 9:00am on June 27, 2017. He faces up to 20 years in federal prison, a fine of up to $250,000 and restitution to his victim.

The FBI is conducting this investigation. Assistant United States Attorney Gregory J. Surovic and Tom Moore are prosecuting this case on behalf of the Government.

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