Lawyer allegedly spent $10 million in loans on gambling
A California lawyer allegedly stole millions of dollars from a lender, lied about where the money was going and spent it on gambling in Las Vegas, according to a federal lawsuit filed earlier this month. Sara King, who works at a Newport Beach law firm, allegedly took nearly $10.3 million from LDR International Limited, a lending company based in the British Virgin Islands and the plaintiff in the suit, saying it would go to third-party borrowers.
King ran her own lending service, King Family Lending, of which she was the sole employee, according to the suit. The suit alleges King Family Lending was just a shell company and that King would get loans from LDR International Limited saying they would go to third-party borrowers who had put up collateral like yachts and jewelry.
LDR International Limited provided 97 loans, and received what they allege were falsified documents about the “collateral purportedly securing said loans, including but not limited to title documents, appraisals, and photographs, with name and other identifying information of the third-party borrower redacted,” according to the suit.
Last year, a court ordered King Family Lending to halt all business and revoked its broker license. King allegedly told the plaintiffs that King Family Lending’s license was inactive because of an “administrative problem.”
The plaintiff alleges King was really pocketing the money they loaned “to gamble in Las Vegas, fund an extravagant lifestyle, and for other personal uses by King.” They allege she moved into the Wynn hotel in Las Vegas for six months and “gambled 24/7.” They allege her ex-husband, who has “fled to Morocco,” substantiated their belief that King engaged in “massive fraud.”
The plaintiff submitted evidence, like photos of her golfing and driving in her car, that allegedly show King living a lavish lifestyle, yet King provided evidence that she only has $11.98 in her bank account. “King claims she has spent all of the funds and has no money left to her name,” the plaintiff alleges in the suit. “King also is crossing state lines to engage in further frauds.”
They also allege King is still asking them for money and sending “fake deals” to the plaintiff.
They also included emails from King, where she sends what they allege are fake confirmations about collateral for the loans. In one, she promises an NHL player’s salary as collateral.
King is also accused of intentionally misrepresenting to the plaintiff that $6,331,580 in loans had been repaid by the third-party borrowers and that money had been “redeployed” to fund additional loans, according to the lawsuit. She also allegedly falsified bank statements to show deposits from third-party borrowers that were fake.
The plaintiff is asking for a jury trial and says King owes them at least $10,258,500 in damages – but the amount will be determined at trial. They are also seeking attorney’s fees from King.
In a statement to CBS News, attorney Ronald Richards, who is representing the plaintiff, said more of her alleged victims have come forward.
Richards said he believes King needs to be banned from Las Vegas casinos, disbarred and prosecuted by law enforcement.
“She is an economic terrorist that uses her law license and finance license as tools to defraud lenders, friends, and marks she meets while gambling and socializing,” he said.
CBS News has reached out to King Family Lending for a comment and is awaiting response. It was not immediately clear if King had an attorney representing her in this matter.
