https://www.winebusiness.com/news/?go=getArticle&dataid=186453 Charles Banks sentenced to four years for defrauding now-retired NBA star Tim Duncan Banks is still listed as an officer on ABC licenses for Mayacamas Vineyards and Cultivate Wines. On Wednesday, a representative for the California Department of Alcoholic Beverage Control said the matter is "under review," saying "Whatever licenses he's connected to will be looked at." by Kerana Todorov June 28, 2017 Former Screaming Eagle co-owner Charles Banks on Wednesday was sentenced to four years in federal prison for defrauding now-retired NBA star Tim Duncan in a multi-million dollar deal, according to federal authorities in Texas. U.S. District Judge Fred Biery also ordered Banks to pay $7.5 million in restitution and be placed on supervised released for three years after his release, according to the U.S. Attorney Attorney’s Office in San Antonio. Banks, 49, of Atlanta, pleaded guilty in April to one count of wire fraud. Banks, who faced up to 20 years in federal prison, may report to federal authorities as early as Aug. 28. In the meantime, he remains out of custody on bond. Tim Duncan, who retired from the San Antonio Spurs in 2016, and his attorney, Tullos Wells, addressed reporters as they left the San Antonio federal courthouse on Wednesday. San Antonio’s KABB FOX 29 news posted a video of their comments on Facebook Live. Duncan said he was “fine” with the sentence. “When you break the law, you do a crime,” Duncan said, “you have to pay up. And unfortunately, that’s what happened.” This could have happened to anyone, said Duncan, who hopes this sends a message that people who prey on athletes or others will be “punished severely.” Wells said We’re very appreciative of what the United States Department of Justice and the FBI did in terms of putting this case together.” “I remind everyone that the reason Tim worked with the government and instructed us to work with the government as much as we did was because he wanted to make sure this did not happen to others,” Wells said. It is still unclear what the future holds for Banks’ winery assets. Banks is still listed as an officer on ABC licenses for Mayacamas Vineyards and Cultivate Wines. On Wednesday, a representative for the California Department of Alcoholic Beverage Control said the matter is “under review.” “Whatever licenses he’s connected to will be looked at,” said Brett Musselman, the ABC representative. Banks ran Terroir Winery Fund, which has an office in Napa. Terroir’s portfolio includes brands and wineries in the United States, New Zealand and South Africa. “We’re in the process of updating the ABC files,” said Kevin McGee, who was appointed chief executive officer at Terroir Winery Fund before Banks filed his guilty plea in April. Banks has stepped away from Terroir’s day-to-day operations, McGee said. The companies continue to sell wine, he stressed. “All the wineries continue to do business,” McGee said. Banks has resigned his directorship in New Zealand’s Trinity Hill winery, a winery in Terroir’s portfolio. The New Zealand Overseas Investment Office in April said Banks was “unlikely to meet his on-going obligation to remain in good character” – a requirement to remain in control of the winery. Terroir continues to sell and market Mayacamas Vineyards and Cultivate Wines, a brand in Banks’ portfolio. The Columbus, Ohio-based Schottenstein family, who co-owns Mayacamas Vineyards with Banks, has sued Banks to remove him as a director. That lawsuit is ongoing in Napa County Superior Court. The U.S. Securities and Exchange Commission is also suing Banks in federal court over the Gameday loan. That case remains open. Reflecting on Banks’ sentence, McGee said “Our thoughts are obviously with him and his family.” Banks was indicted in September over a million deal with Gameday Entertainment LLC, a sports apparel company based in Colorado. Banks, an officer in that company, spurred Duncan in 2012 to loan $7.5 million to Gameday, according to court reports. Federal officials said Banks then misled Duncan to back another $6 million loan to Gameday in 2013. “By pleading guilty, Banks admittedly manipulated the victim into guaranteeing Gameday’s $6 million debt by misrepresenting the true nature of the transactions. Furthermore, Banks failed to fully disclose the commissions, payments and loans he was receiving from Gameday that were specifically tied to these transactions.,” according to the U.S. Attorney’s Office in San Antonio. Federal officials said in court records that Banks faxed two signature pages to Duncan’s hotel in Miami for the $6 million guarantee as Duncan prepared to play Game 2 of the NBA finals against the Miami Heat.
By the way, Screaming Eagle Winery of which Banks is a co-owner sells out years in advance with their premium bottles going for over $2200 per bottle and their cheaper second flight wines going for $400 a bottle.
