Financial Adviser Sued By NBA Star
Tim Duncan, San Antonio Spurs 15-time All Star, recently sued his adviser in Texas state court, claiming he was pushed into investments despite conflicts of interest that ultimately caused him substantial losses.
In his complaint filed in San Antonio, Duncan claims that his Atlanta-based financial adviser, Charlie Banks, hid his own interest in investment opportunities that Banks recommended to Duncan.
The NBA star said that Banks exploited his good intentions and their relationship for his personal gain, and that he has joined the long list of professional athletes taken to the cleaners by investment advisers.
Adviser conflict of interest
The NBA star claims that over a 17-year period, he invested in a series of opportunities presented by Banks, with the assurance that the investments were in the best interest of Duncan’s family’s long-term financial security.
Duncan said in his filing that during his rookie year in 1998, Banks urged him to invest several million dollars in hotel, beauty products, sports merchandising and wineries that the adviser owned or in which he had financial stakes. Banks also pressured Duncan to invest in investment funds that he — Banks — controls.
Also in his complaint, Duncan says that Banks used these wineries and funds to secure substantial income for himself, while Duncan received little or nothing in return.
Duncan accused Banks of defrauding him through a $7.5 million loan he made to Gameday, a company Banks controlled. According to Duncan, Banks subsequently obtained a $6 million bank loan with the basketball player’s forged signature.
Duncan’s lawyers say in the complaint that since an athlete’s earning years are relatively limited, Duncan wanted to invest his earnings prudently in order to ensure a secure future for his family. Basketball-reference.com reports that Duncan has made more than $224 million in his NBA career.
The team of investment fraud lawyers at Starr Austen & Miller LLP fights for the protection of investors and handles cases involving securities arbitration misrepresentation, overconcentration, broker fraud, negligence and breach of trust.
Source: Investment News