Tim Duncan has
sued his former financial adviser Charles Banks, saying Banks recommended investments that were unsuitable
due to conflicts of interests. As a result, Duncan says he sustained losses
of approximately $25 million.
According to Duncan, he discovered the substantial financial losses while
he was reviewing his finances as a part of his divorce. The alleged losses
occurred from 2005 to 2013. According to Duncan, Banks allegedly recommended
certain investments that he stood to personally gain from, a factor he
did not disclose to Duncan while making the recommendations.
Duncan also claims that Banks made attempts to avoid a lawsuit, saying
that he would compensate Duncan for his losses. According to Duncan, he
filed the lawsuit because Banks allegedly never followed through with
his promise to pay Duncan back.
Duncan’s lawsuit alleges that Banks solicited Duncan to invest in
various hotels, merchandise, wineries, and other products – all
of which were allegedly owned by Banks or that Banks had a financial stake
in. According to a Bloomberg Business article, Bank said that Duncan is
using the lawsuit as leverage to get out of limited partnership investments.
While Duncan told Bloomberg Business that he has no plans to proactively
go out and warn other young athletes about the potential pitfalls of investing,
he said he does hope that what happened to him serves as an example so
that the same thing doesn’t happen to more people.