Golden 1 CU, the Sacramento Kings & a FBI Investigation

The $11.9 billion Golden 1 Credit Union said Thursday it is cooperating with an FBI investigation of a former Sacramento Kings executive who allegedly diverted millions of corporate sponsorship funds to buy beachfront properties in Southern California.

The Sacramento Bee reported Jeffrey R. David, 44, the Kings’ former chief revenue officer and a former NBA executive, allegedly siphoned $9 million from Golden 1 CU and $4.4 million from Kaiser Permanente Foundation. The alleged scheme was uncovered by an internal investigation conducted by the Kings’ organization. The money is reportedly being recovered with no losses to the team or to Golden 1 CU and the Kaiser foundation, according to the newspaper.

The Kings turned over its internal probe findings to the FBI last week, which launched its own investigation and reportedly began the formal process of seizing the properties. The FBI declined comment.

In June 2015, the Sacramento-based Golden 1 CU became the first cooperative in the nation to sign a 20-year, $120 million naming rights deal for a major league professional sports venue, — Golden 1Center — that opened in September 2016 as the home court arena of the NBA’s Sacramento Kings.

The naming rights deal is believed to be the credit union industry’s largest.

In 2016, David proposed to Golden 1 officials that the credit union make advanced payments on the naming rights deal in exchange for lower future payments during the 20 –year agreement, according to the newspaper’s team sources, the Kings’ internal documents and court papers filed in U.S. District Court in Sacramento.  Golden 1 reportedly agreed to make an early payment of $9 million that was deposited into a Sacramento Sports Partners bank account allegedly opened by David.

“We are cooperating with federal law enforcement agencies in their ongoing investigation and working closely with the Kings organization,” Golden 1 said in a prepared statement to CU Times. “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.”

David left the Kings organization after it eliminated his position in June. He is working as a chief revenue officer for the NBA’s Miami Heat. The team, however, announced Thursday that David is on leave pending the outcome of the investigation.

David has not been charged with any crimes and he did not immediately respond to a CU Times request for comment Friday.