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.
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