Lawyer admits spending over $8.7M in investor money on Vegas gambling, lavish lifestyle
Criminal Justice
Lawyer admits spending over $8.7M in investor money on Vegas gambling, lavish lifestyle
June 15, 2023, 3:03 pm CDT
California lawyer Sara Jacqueline King, 39, will plead guilty to wire fraud and money laundering to resolve charges that she gambled away and spent more than $8.7 million in investor money. Photo from Shutterstock.
A California lawyer has agreed to a plea deal to resolve charges that she gambled away and spent more than $8.7 million in investor money that was supposed to fund loans to celebrities, professional athletes and other wealthy people.
Sara Jacqueline King, 39, will plead guilty to wire fraud and money laundering, according to the June 12 plea deal and a June 13 press release.
The Orange County Register and KTLA have coverage.
King admitted that she spent the money on Las Vegas gambling, lavish spending and the purchase of a Porsche Taycan electric sports car. A previous civil lawsuit filed against King by a lending company, LDR International, cited its belief that King “moved into the Wynn Las Vegas resort and hotel, lived there for six months, and gambled 24/7.”
King operated the scheme through her company King Family Lending in Newport Beach, California, according to the plea agreement. The company claimed that loans to high-net worth people were secured by borrower assets, such as luxury cars, yachts and money from professional sports contracts.
King told investors that she retained the collateral and would sell it in the event of a borrower’s default. In reality, King made no loans at all, according to the plea agreement.
Five investors lost more than $8 million in the scheme. King agreed to pay $8.78 million in restitution, but she agrees that the amount could change if more information becomes available before sentencing.
The maximum sentence is 30 years in prison. Prosecutors will recommend downward adjustments in sentence calculations for acceptance of responsibility.
King’s initial court appearance is scheduled for June 20.
LDR International’s civil suit had alleged that it made more than $10.2 million in loans to King that were never repaid. The company said it received $2 million against interest owed when it demanded payment before filing suit.
A lawyer for LDR International, Ronald Richards, told the Orange County Register that the company was grateful that the FBI and the Department of Justice worked so quickly to bring King to justice.
“It was worth exposing her, and not listening to her lies, so no further victims would be harmed by her abuse of trust,” Richards said.
Richards told the Orange County Register that LDR International planned to seek triple damages, amounting to the $8 million that she owes LDR International plus an additional $16 million.
