Sacramento, California - Jeffrey R. David, 44, was sentenced by U.S. District Judge William B. Shubb to seven years in prison for wire fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.

David is scheduled to surrender for service of his sentence on August 20th.

U.S. Attorney Scott stated: “David used his high-ranking position with the Sacramento Kings to deceive businesses across the country into sending him millions of dollars. The brazen scheme involved forgeries, stolen corporate executive identities, money laundering, and even instructing a former colleague to destroy evidence. Thanks to the fast actions of the Kings organization, the FBI, and attorneys in this office, the fraud did not result in the permanent deprivation of the $13.4 million that David intended to steal from his victims, as that money was recovered through timely government seizures and forfeitures. Today’s sentence should deter others from committing substantial frauds such as this one.”

“Mr. David violated the trust of his employer and clients, siphoning millions from agreements to fund purchases he could not otherwise afford. Asset forfeiture of real estate purchased with the misappropriated funds was able to restore the losses the organization suffered as a result of Mr. David’s crimes but trust is much more difficult to repair,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “This case exemplifies the FBI’s commitment to investigating large-scale financial fraud to ensure the integrity of financial transactions and ensure that those who commit greed-fueled financial crime face justice.”

According to court documents, David served as the Chief Revenue Officer for the Sacramento Kings, a professional sports franchise. As part of his duties, he negotiated sponsorship and other marketing agreements with companies in California and elsewhere. From October 2012 through July 2016, David used this position to defraud these companies by representing to them that payments they made were going to the Kings, when in fact the payments were going to bank accounts under his sole control, 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 in California and elsewhere.

In particular, David took advantage of the King’s opening of a new stadium by amending, without the franchise’s knowledge, two major sponsorship agreements from the Golden 1 Credit Union and Kaiser Permanente, a nonprofit health care plan, so that $9 million and $4.4 million wires from these entities went to accounts controlled by David, rather than the Kings. In order to accomplish this fraud, David forged the signatures of various individuals, including the then-president of the Kings, the president and chief executive officer of the Golden 1, and an executive at Kaiser Permanente.

David used the fraud proceeds to purchase and remodel real estate in Hermosa Beach and Manhattan Beach, in Southern California. He also spent the fraud proceeds 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.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Michael D. Anderson, Matthew M. Yelovich, and Kevin C. Khasigian are prosecuting the case.