According to a report from the Sacramento Bee, a former top executive of the Sacramento Kings is suspected of siphoning off $13.4 million from two of the team’s top sponsors and using the funds to purchase beachfront property in Southern California.
David allegedly took $9 million from Golden 1 Credit Union, the title sponsor for the Kings arena, and another $4.3 million from Kaiser Permanente, which he used to buy a beach house in Hermosa Beach in 2016 as well as a condo in Manhattan Beach in 2017.
David first worked for the Kings from 2006 to 2010, returning to the team at David Stern’s behest in 2011 after a stint with the NBA. He served as the Kings’ chief revenue officer until he left this June, and he was hired into the same position by the Miami Heat a month later.
David, whose position with the Kings was eliminated on June 1 and who joined the Miami Heat as a chief revenue officer in July, did not respond to a message seeking comment that was left on his cell phone voice mail early Thursday. No criminal charges have been filed in the case, which was referred to federal investigators by the Kings a week ago.
Heat confirm to Sun Sentinel that this remains their only statement on the matter. https://t.co/mWqas4eKLd
— Ira Winderman (@IraHeatBeat) August 30, 2018
Federal officials would not comment on the matter, but the Kings issued a statement Thursday to The Bee confirming the investigation.
“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, the 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.”
NBA spokesman Mike Bass said the league office also was aware of the matter.
“We are aware of the situation involving Jeff David and have been in contact with the Kings and Heat organizations as well as law enforcement,” Bass said in an email to The Bee. “We will continue to monitor for any developments.”