Former Kings Employee Accused Of Stealing Funds

Jeffrey R. David, the former chief revenue officer for the Kings, is under suspicion of diverting $13.4MM from two team sponsors, according to Sam Stanton and Darrell Smith of The Sacramento Bee. David allegedly used the money to buy beachfront property in Southern California.

David is being investigated by the FBI and federal prosecutors, who say he set up a money-laundering scheme that took $9MM from the Golden 1 Credit Union and an additional $4.4MM from Kaiser Permanente Foundation.

No criminal charges have been filed, and the reporters weren’t able to get a comment from David. However, the Kings issued a statement confirming the investigation.

“Last week, we alerted federal law enforcement to suspicious financial transactions involving a former Kings employee, Jeff David,” the team said in its statement. “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.”

David left the team June 1 when his position was eliminated. He currently serves as chief revenue officer for the Heat.

William Portanova, an attorney for the Kings, said the organization contacted federal officials as soon as it became aware of the situation. He offered assurances that all the missing money is being recovered. Team officials are expected to brief their ownership group on the progress of the investigation tomorrow morning.

Two sources told The Sacramento Bee that the cash in question was part of advertising contracts the companies signed with the team, including naming rights for the Golden 1 Center. David, who was in charge of negotiating ad contracts and corporate partnerships, allegedly asked for advance payments from the two companies and diverted that money into a company he set up called Sacramento Sports Partners LLC.

The Heat also issued a statement today and have placed David on leave while the probe continues, relays Ira Winderman of The Sun-Sentinel (Twitter link).

“We are aware of the investigation of Jeff David, which focuses on events that took place prior to his joining our team,” the statement read. “We are fully cooperating with the authorities. Jeff David is on leave, pending the outcome of the investigation.”

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