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Former Kings Executive Under Federal Investigation

SACRAMENTO -- Former Sacramento Kings executive Jeff David, with his attorneys, arrived at the Federal Courthouse in Sacramento on Thursday, after a move by prosecutors to seize properties he allegedly bought with Sacramento Kings' money.

One property was an $8 million five-bedroom, seven-bathroom home in Hermosa Beach. Another was a 4-bedroom, 4-bathroom home in Manhattan Beach worth $3.4 million.

David is facing allegations that the money to buy those homes was siphoned out of sponsorship deals he oversaw for the Kings.

The Kings issued a statement on Thursday:

"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, US 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 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."

Among other things, David brokered the reported $120 million naming deal that made Sacramento’s downtown arena the Golden 1 Center.

According to court documents filed by federal prosecutors, David set up a company in his own name and told sponsors like the Golden 1 Credit Union and Kaiser Permanente they’d pay less over the life of the sponsorship contract of they paid a little extra up front.

Federal investigators allege David pocketed the extra money.

The Golden 1 Credit Union also issued a statement on Thursday:

"Golden 1 Credit Union is aware that the federal government has initiated an investigation into whether the Sacramento Kings have been the victim of a financial fraud, perpetrated by a former Kings representative.

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.

Golden 1 Credit Union appreciates the professionalism and dedication of the law enforcement officials conducting this investigation."