Former Kings Executive Jeff David Under Investigation On Fraud Charges
SACRAMENTO (CBS13) —A former Sacramento Kings executive is accused of siphoning funds meant for the team's arena naming rights into an LLC used to purchase millions of dollars of real estate.
Federal investigators served a civil forfeiture complaint, seizing Southern California property purchased with money allegedly stolen from the Kings by Jeff David.
Investigators are looking into evidence that shows David allegedly siphoned $13 million from sponsorship naming rights deals between the Kings and business partners Golden One Credit Union and Kaiser Permanente.
Investigators say David created his own limited liability company and directed Golden One Credit Union and Kaiser Permanente to make "advanced payments" of fees owed under the agreement, into the LLC he created.
California Secretary of State records show David created an LLC called "Sacramento Sports Partners" and listed Golden One and Kaiser Permanente foundation as partners.
That LLC purchased homes in Hermosa Beach and Manhattan Beach for millions of dollars.
The naming rights deal for the Golden 1 Center was valued at $120 million at the time.
David's LinkedIn page lists him as being with the Sacramento Kings from 2011 to July 2018.
The investigation began last week when the Kings alerted law enforcement officials about alleged financial transactions by David that appeared to be suspicious. On Monday, US Department of Justice officials began recovering and seizing properties involved, the team said in a statement.
"We appreciate the swift action on behalf of the officials at the FBI and US 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," the Kings stated.
Kings Statement confirms ex-executive Jeff David at center of federal investigation over fraud for allegedly siphoning money in naming rights of @Golden1Center into his own account, buying property with it.
— stevelarge (@largesteven) August 30, 2018
Golden 1 Credit Union also issued a statement in response to the allegations that read, in part: "We are cooperating with federal law enforcement agencies in their ongoing investigation and working closely with the Kings organization. All Golden 1 member accounts are safe, and there is no impact to any of their accounts.
The Miami Heat said that David is on leave, pending the outcome of the investigation.