Sara Jacqueline King, a 39-year-old lawyer from California, entered into a plea deal to settle charges related to misappropriating over $8.7 million in investor money. The funds were intended for loans to high-profile individuals, including celebrities, professional athletes, and other affluent individuals.
According to the plea deal reached on June 12, King will plead guilty to wire fraud and money laundering. This development has been confirmed through a press release issued on June 13. The Orange County Register and KTLA have provided extensive case coverage.
King has admitted to using the embezzled funds for her personal indulgences, including extravagant gambling trips to Las Vegas, lavish spending sprees, and even the purchase of a luxury Porsche Taycan electric sports car. A civil lawsuit previously filed against King by lending company LDR International shed light on her extravagant lifestyle, alleging that she resided at the renowned Wynn Las Vegas resort and hotel for six months while engaging in non-stop gambling activities.
According to the plea agreement, King executed the fraudulent scheme through her company, King Family Lending, based in Newport Beach, California. The company purported to secure loans for wealthy individuals by utilizing their valuable assets, such as luxury cars, yachts, and income from professional sports contracts, as collateral.
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King assured investors that she would retain the collateral and sell it in the event of a borrower’s default on the loan. However, the plea agreement revealed that King never actually issued any loans, exposing her entire operation as fraudulent.
Tragically, five investors fell victim to King’s scheme, collectively losing over $8 million. As part of the plea deal, King has agreed to pay $8.78 million in restitution, although this amount is subject to change pending the emergence of additional information prior to sentencing.
Considering the severity of the charges, King could potentially face a maximum prison sentence of 30 years. However, prosecutors are expected to recommend sentence reductions based on her acceptance of responsibility for her actions.
King’s initial court appearance has been scheduled for June 20, marking the beginning of a legal process that will determine the appropriate consequences for her crimes.
In addition to the criminal charges, LDR International, the lending company that filed the civil lawsuit against King, claimed that it provided her with loans amounting to over $10.2 million, which were never repaid. Before filing the suit, the company managed to recover $2 million in interest owed.
Ronald Richards, an attorney representing LDR International, expressed gratitude towards the swift actions of the Federal Bureau of Investigation (FBI) and the Department of Justice in bringing King to justice. Richards emphasized the importance of exposing King’s deceitful actions to prevent further harm to innocent victims.
LDR International plans to pursue additional damages in the civil suit, seeking triple the amount owed by King. If successful, this would result in a total claim of $24 million, consisting of the initial $8 million owed plus an additional $16 million.
The legal community and the public alike eagerly await the unfolding of this high-profile case, as it serves as a stark reminder of the need for transparency, accountability, and ethical conduct within the legal profession. The repercussions King faces will likely resonate throughout the industry, reinforcing the importance of upholding the trust placed in legal professionals by their clients and the public.