A Heat executive hired over summer from the Kings is under investigation for allegedly using $13.4 million from two Kings sponsors to fund his own real estate endeavors, according to The Sacramento Bee.
Jeffrey David, now the chief revenue officer of the Heat after operating in the same role with Sacramento, allegedly participated in a “sophisticated money-laundering scheme” that stole cash from the Golden 1 Credit Union ($9 million) and Kaiser Permanente Foundation ($4.4 million). The Heat announced they have placed David on leave.
The Sacramento Bee reports David used the money he siphoned from team sponsors to purchase beachfront property in Southern California, and while no criminal charges have been filed, the Kings referred the case to federal investigators last week. The FBI and federal prosecutors are reportedly looking into the matter.
“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,” the Kings wrote in a statement to The Sacramento Bee.
Kings attorney William Portanova told The Bee that he doesn’t expect any assets to be lost given the quick response to the situation.
David was in charge of negotiating advertising contracts and corporate partnerships for the Kings, according to The Bee.
“We are aware of the investigation of Jeff David, which focuses on events that took place prior to his joining our team,” the Heat said in a statement. “We are fully cooperating with the authorities.”