Posted on: February 16, 2023, 08:17h.
Last updated on: February 16, 2023, 08:17h.
The president of a California lending business allegedly tapped into over $10M in client money to pay for her extravagant living costs at the Wynn Las Vegas for six months. She also was using the cash for gambling 24/7, according to a recent lawsuit.
Sara Jacqueline King, an Orange County, Calif. attorney who was listed as president of King Family Lending LLC, allegedly misspent $10,258,500 from the client, LDR International, a business based in the British Virgin Islands.
Treble Damages Sought
LDR filed a lawsuit on February 11 at the U.S. District Court for the Central District of California to recover the money. The court action is also seeking treble damages.
Lawyers representing LDR claim King is guilty of breach of written contracts, fraud, and civil theft. The scheme was described in the lawsuit as “a massive fraud.”
One of LDR’s attorneys, Ronald Richards of Beverly Hills, Calif., told Casino.org in an email on Thursday, “We hope to have her ongoing frauds halted. There are numerous other victims.”
He added that Sara King “is still making false promises of repayment and deals closing.” The legal team also wants to see her lender license and attorney license “curtailed and halted,” Richards said.
The lawsuit claims King “moved into the Wynn Las Vegas resort and hotel, lived there for six months, and gambled 24/7.” She also led “an extravagant lifestyle” at the Las Vegas Strip property.
King claims she is now broke. Last week, she asked LDR for more funds to “try and make back” the money she already spent, according to the lawsuit.
“We hope that casinos stop allowing her to gamble away investor/lender/victim funds by making them aware of the ongoing scam,” Richards said.
The aura of trustworthiness, because of these licenses, played a big role in this fraud. We are hopeful a consumer alert is placed on her profiles soon. We are hopeful she will return — and not gamble any further money — and are grateful to the casinos who have exited her from their properties.”
Under the agreement, LDR provided 97 loans to King Lending between January and October 2022. King was supposed to give the money to third-party borrowers.
But the borrowers never existed, and no loans were made, according to the lawsuit. The money was never repaid by King.
In the middle of the 10-month period, during April, King Lending’s state lender license became ineffective, too, according to the lawsuit.
The loans were supposed to be secured by “luxury automobiles, boats, yachts, jewelry, watches, precious metal coins, and the earnings from guaranteed professional sports contracts,” the lawsuit revealed.
LDR officials also were led to believe the borrowers were professional athletes or other people with sufficient collateral, the ABA Journal reported.
King Promises Confidentiality
On its apparent website, King Family Lending said it offers “lending solutions to clients in many sectors; each secured by various high value assets.”
“Assets are insured by a nationally recognized insurance carrier for more than the loan amount, and all assets … are stored in highly secured facilities,” the website added. “We provide our clients absolute confidentiality and privacy.”
King’s ex-husband, Kamran Pahlavi, who is believed now to be living in Morocco, “has substantiated [the] plaintiff’s belief that King engaged in a massive fraud,” according to the ABA Journal.
Casino.org attempted to reach Sara King for comment. No immediate response was given.
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