Former Sacramento Kings executive get 7 years for multimillion dollar fraud scheme

A former executive with the National Basketball Association's Sacramento Kings was sentenced following his conviction for a multimillion-dollar fraud scheme.

In a sentenced issued yesterday at U.S. District Court in Sacramento, Jeffrey R. David will serve a seven year prison term. David is scheduled for incarceration on August 20.

As the chief revenue officer for the Kings, part of David's duties included negotiating sponsorship and other marketing agreements with companies. Between October 2012 through July 2016, David used this position to defraud these companies like Kaiser Permanente and Golden 1 Credit Union. 

David took the sponsorships payments and diverted them to bank accounts under his sole control, but held in the name of Sacramento Sports Partners LLC. The Kings did not know about these payments or this LLC at the time the payments were solicited and made. 

In total, David stole approximately $13.4 million from five companies and used the proceeds to purchase and remodel real estate in Hermosa Beach and Manhattan Beach, in Southern California. The stolen cash was also used on various personal expenses, including checks to family members, a private jet membership, and substantial credit card bills. 

The United States moved to forfeit and seize these properties and other assets held by David, and the professional sports franchise has received over $13.2 million in restitution to date.