Ex-Kings Exec. Jeffrey R. David Accused of Taking Millions in Sponsorship Money
Miami Heat chief revenue officer Jeffrey R. David is being investigated for his part in a money-laundering scheme while he held the same role with the Sacramento Kings, according to Sam Stanton and Darrell Smith of the Sacramento Bee.
He has been placed on leave with the Heat, as the team noted in a statement, via Ira Winderman of the Sun-Sentinel:
David is suspected of siphoning money from team sponsors, including $9 million from the Golden 1 Credit Union and $4.4 million from the Kaiser Permanente Foundation, and using it to buy beachfront property in California.
Each company has a multi-year advertising contract with the Kings, including naming rights for the stadium now known as the Golden 1 Center, which cost $120 million over 20 years.
David was in charge of negotiating these types of deals, but investigators believe he might have diverted some funds into a separate LLC that later was used to purchase an $8 million home in Hermosa Beach.
The Kings released a statement confirming the investigation, via Stanton and Smith:
"Last week, we alerted federal law enforcement to suspicious financial transactions involving a former Kings employee, Jeff David. 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."
No criminal charges have yet been filed for the investigation that began one week ago.
