Charles Banks Charged With Fraud

Charles Banks - Fraud

On July 13, 2017, the Securities and Exchange Commission (“SEC”) announced that it has obtained a judgment and industry bar against Charles Banks, an Atlanta-based investment adviser, charged with defrauding a former professional basketball player.

According to the SEC’s complaint, Charles 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, Charles 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, Charles 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.

For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, or [email protected].  This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.

Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855