Former Sacramento Kings executive Jeffrey David is under federal investigation, as he is suspected of embezzling $13.4 million from the NBA club’s sponsorship revenue.
Suspicion has been raised that David, the Kings former chief revenue officer, conducted a scheme to illegally divert sponsorship revenue toward the purchase of beach homes in Southern California. The funds in question include $9 from Golden 1 Credit Union, which signed a 20-year, $120-million agreement in 2015 to become the naming-rights sponsor for the Kings’ Golden 1 Center, and an additional $4.4 million from the Kaiser Permanente Foundation.
In his role with the Kings, David was tasked with leading negotiations for sponsorships and corporate partnerships. Federal investigators are looking into whether the funds in question were diverted to Sacramento Sports Partners LLC, which listed David as its manager, and later used in the purchase of beachfront property. That includes a home in Hermosa Beach that was purchased for $8 million in 2016, followed by the purchase a Manhattan Beach condominium for $3.4 million in 2017.
David has not been charged with a crime to this point. The Kings recently notified federal authorities of suspicious activities by a former employee, while David’s attorney says that his client is cooperating with the investigation. More from the Sacramento Bee:
“Last week, we alerted federal law enforcement to suspicious financial transactions involving a former Kings employee, Jeff David,” the team said. “That investigation is underway and on Monday, U.S. Department of Justice authorities began the formal process of recovering and seizing the properties involved in the investigation.
“We appreciate the swift action on behalf of the officials at the FBI and U.S. Attorney for the Eastern District of California McGregor Scott as they work to complete this investigation and we will take all appropriate action once it is complete.”
Late Thursday, attorneys for David – Sacramento laywer Mark Reichel and the Miami-based firm of Seitles & Litwin – confirmed he is working with law enforcement “and will continue to do so,” but declined to comment further.
Kings attorney William Portanova confirmed the team went to federal officials with findings of an internal investigation and noted that because of the team’s swift actions, all assets are being recovered with no loss to the team or the companies.
David joined the Miami Heat in July, assuming the same title he previously held in Sacramento. The Heat organization has confirmed that it is placing him on leave pending the outcome of the investigation.
