The Californian lawyer allegedly used more than $8 million of her clients’ money to sustain a lifestyle of luxury, involving frequent gambling bouts. She has now agreed to plead guilty to wire fraud and money laundering, based on information provided by the California Central District Court. King is said to have gambled $300,000 a day.
Crime Referred to the FBI for Investigation
King spent six months in a VIP suite at Wynn where she was gambling at the casino and visiting other properties as well. The funds used to fuel this habit were mostly owned by investors who had invested in King Family Lending LLC (KFL) in the hopes of securing a high yield on their investment.
King advertised her company as an entity that had been offering loans to celebrities and professional athletes, which was based on a “pawn shop model” whereby the loans were secured with valuables owned by the high net worth individuals.
However, this was a front, the court found out as not a single loan had been issued under KFL. Then, in February this year, one of the investors, LDR International, pressed on and made accusations that King had been misusing the money and pocketed more than $10 million in investor money. LDR International did not lose any time and referred the case straight to the FBI.
Even before that, King had faced some difficulties. She was prohibited from entering Wynn last year when it was found out that she was also trying to scam staff members and fellow guests. An employee at the casino invested her $5,000 savings in the business.
A Husband Who Is Not Happy with His Wife
Even more interestingly, King is the wife of Kamran Pahlavi, the great-nephew of Iran’s last Shah. He commented on her case in an interview for LA Magazine in which he said that he had left his wife after he found out that she was involved in shady dealings. It was he who introduced King to LDR in the first place, however.
As to her prison term, King is now looking at a less severe penalty, with prosecutors acquiescing that she should receive a penalty in the lower end. This means that she is looking at anything between three to five years if a judge shows lenience. Conversely, a crime such as hers may put her away for up to 30 years instead.