Sara King, a California attorney, and her company King Family Lending LLC, are being sued in a federal lawsuit by LDR International Ltd for allegedly embezzling over $10 million. Despite the influx of funds, the complaint reveals that King only has $12 in her bank account.
According to the lawsuit, LDR began loaning money to King’s company in January 2022, with a $195,000 investment supposedly secured by Audemars Piguet and Richard Mille watches. King then allegedly made several more deals with LDR over the next ten months to fund loans that were allegedly backed by yachts, diamonds, Aston Martins, Lamborghinis, and sports contracts for the National Hockey League, Major League Baseball, National Football League, Major League Soccer, and National Basketball Association.
However, the complaint alleges that when the loans reached maturity, King did not pay back LDR. Instead, King claimed that over $6.3 million in loans had been repaid and “redeployed” to fund more loans. The complaint states that “in fact, there were no loans to any third-party and, therefore, no repayment of any loans to third parties. King falsely represented to the plaintiff that a total of $19,370,000 had been loaned to third-party borrowers.”
LDR claims that King has paid them $2 million in interest, but the $10+ million loan principal is still outstanding. The complaint alleges that King used the funds to gamble at the Wynn Las Vegas resort and hotel, where she reportedly lived for six months and gambled 24/7.
This is not the first financial scheme King has been accused of participating in. She is also named in a lawsuit alleging she failed to repay a $125,000 loan, and there is a separate accusation that she pocketed a $62,000 loan. King also has a default judgment on a debt owed to Citibank.
The complaint accuses King and her company of racketeering, fraud, and breach of contract, among other charges. LDR seeks $10 million in damages, attorney fees, costs, and interest. The lawsuit was filed in the U.S. District Court for the Central District of California.
It is important to note that the allegations made in the complaint are allegations. King and her company have not been found guilty of any wrongdoing. However, this would be a clear case of financial fraud and embezzlement if the allegations are true.
This case highlights the importance of due diligence when investing or loaning money. It is crucial to thoroughly investigate the parties involved and to ask for proof of collateral and repayment plans. If something seems too good to be true, it probably is.