The chief revenue officer of National Basketball Association’s (NBA) Miami Heat has been placed on leave amid an FBI investigation into alleged money laundering.
Jeff David is accused of siphoning off US$13.4 million from two major sponsors during his time working in the same role at fellow NBA team the Sacramento Kings, sources have told daily newspaper The Sacramento Bee.
David, 44, allegedly used the laundered funds to acquire a beach house in California. The US$13.4 million was apparently taken from a pair of major Kings partners, with US$9 million diverted from the Golden 1 Credit Union and a further US$4.4 million drawn off from the Kaiser Permanente Foundation.
While no charges have yet been filed either by the FBI or by federal prosecutors, both the Kings and the Heat have released statements in acknowledgement of the ongoing inquiry.
The Kings’ statement said: ‘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, U.S. Department of Justice authorities began the formal process of recovering and seizing the properties involved in the investigation.’
The Heat added in their own statement: ‘We are aware of the investigation of Jeff David, which focuses on events that took place prior to his joining our team. We are fully cooperating with the authorities. Jeff David is on leave, pending the outcome of the investigation.’