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.

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A California-based lawyer has been accused of stealing up to $10.3 million in order to fund an extravagant gambling lifestyle.

In a lawsuit filed with the US District Court of California on February 11, Sarah Jacqueline King was said to have set up a fraud scheme involving her money-lending company that enabled her get cash from the clients which was then channeled into fake accounts.

According to the lawsuit, King Lending got loans for 97 supposed third-party borrowers from LDR International, a British Virgin Islands-based company. However, the loans were to fake accounts she set up to send to her personal accounts.

A significant amount of that money was then spent at Wynn Las Vegas – one of Nevada’s premier casino resorts. The lawsuit stated King lived there for six months, gambling every day.

The plaintiff for the lawsuit pointed out that King falsified information concerning collateral backing her loans. It stated that she provided records on loans to third-party borrowers that had collateral such as luxury cars, jewellery, antique coins, handbags, yachts, and so on. 

In the words of the lawsuit: “The purported loans from King Lending to the third-party borrowers were purportedly secured by various forms of collateral, including but not limited to luxury automobiles, boats, yachts, jewelry, watches, precious metal coins, and the earnings from guaranteed professional sports contracts.”

The plaintiff added King went as far as forging documents stating some of her loans were backed up by contracts with sports organizations. King supposedly backed this up by making sure to be seen with famous sports personalities such as NFL stars Tom Brady, Josh Allen and Patrick Mahomes. 

The defendant is yet to respond to the lawsuit.

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