David also bought a private jet membership and gave his family money.
The 44-year-old convinced two of the team's major sponsors to bring forward payments and fraudulently siphoned them into one of his personal accounts.
David had claimed he intended to sell the homes, reimburse the Kings and keep any profit for himself.
"That story is not credible. It's not worthy of belief," said judge William B. Shubb.
"I don't believe that was his intention. It doesn't make sense."
David reportedly earned more than £280,000 a year before an annual bonus during his time with the Kings.
According to the Sacramento Bee, David's scheme unravelled after he had left for a similar position with the Miami Heat in 2018.
A Kings member of staff discovered files on his old computer, revealing details of the scheme and sparking a Federal Bureau of Investigation investigation.