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U.S. Securities and Exchange Commission


Litigation Release No. 23879 / July 13, 2017

Securities and Exchange Commission v. Charles A. Banks, IV, No. 16-cv-3399 (N.D. Ga. filed Sept. 9, 2016)

Court Enters Judgment Against Investment Adviser Charged With Defrauding Former NBA Basketball Player

The Securities and Exchange Commission today announced that it has obtained a judgment and industry bar against an Atlanta-based investment adviser charged with defrauding a former professional basketball player.

According to the SEC's complaint, Charles A. Banks, IV fraudulently induced the former professional athlete to invest $7.5 million in a sports team apparel and merchandise company based on a series of misrepresentations about the investment and allegedly misappropriated funds from his client.

On April 3, 2017, Banks pleaded guilty to wire fraud in the U.S. District Court for the Western District of Texas predicated on some of the conduct alleged in the SEC's complaint. On June 28, 2017, Banks was sentenced to 48 months in prison and ordered to pay $7.5 million in restitution.

The judgment, entered on July 5, 2017 by the U.S. District Court for the Northern District of Georgia, permanently enjoins Banks from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940, bars Banks from serving as an officer and director of a public company, orders Banks to pay disgorgement, pre-judgment interest and a penalty with the amounts to be determined a later date upon a motion by the SEC. Banks also has consented to the entry of an SEC order that bars him from the securities industry.

The SEC's investigation was conducted by John G. Westrick and supervised by Stephen E. Donahue of the SEC's Asset Management Unit, and the litigation is being led by H.B. Roback and Graham Loomis in the Atlanta Regional Office.



Modified: 07/13/2017