Telepeer

Newport Beach attorney accused of misappropriating $10 million to fund lavish Vegas lifestyle

February 24, 2023

A Newport Beach attorney allegedly scammed a lender out of $10.2 million in 2022 to fund a lavish lifestyle that included jewelry, cars, around-the-clock gambling and a six-month stay at a swanky Las Vegas resort.

LDR International Limited, based in the British Virgin Islands, is suing Sara Jacqueline King, 39, who operates King Family Lending and is a partner of the King Reuben law firm, for breach of contract, fraud and theft.

“King Lending engaged in a massive fraud on the plaintiff,” states the 33-page lawsuit filed earlier this month in U.S. District Court.

King did not respond to a phone call and an email seeking comment. Her law office in Newport Beach purportedly is no longer in operation. She has not been charged with a crime.

Newport Beach attorney Sara King is accused of using $10.2 million intended for borrowers to finance her lavish Las Vegas lifestyle. (Image via U.S. District Court lawsuit)

According to the complaint, LDR International extended 97 loans to King Lending for third-party borrowers from January to October 2022.

Phony collateral

The borrowers’ loans purportedly were secured by collateral that included luxury automobiles, boats, yachts, jewelry, watches, valuable coins and earnings from guaranteed professional sports contracts, says the suit.

In each instance, King allegedly provided LDR International with phony title documents, appraisals, photographs and contracts, as well as proof of funding through cashier’s checks with the borrowers’ names redacted.

“Because the payee name was redacted, plaintiff could never verify that the funds were actually loaned to the third-party borrower,” the suit states. “In fact … there were no payments made by any third-party borrowers because there were no third-party borrowers or loans.”

LDR International alleges in the suit that King spent the majority of loan funds on an extravagant lifestyle at the Wynn Las Vegas resort, where she lived for six months, and gambled “24/7.”

The complaint also includes text from several emails King purportedly sent to LDR International bragging about her success in making lucrative third-party loans.

“Finally, my favorite and the most secure type of loan deal has finally arrived,” King purportedly wrote in a May 14, 2022, email. “Lending against guaranteed sports contracts. There is a professional hockey player who has a guaranteed contract for $3 million a year. He wants to borrow $500k for 6 months. Because it’s a major sports contract our maximum rate we can charge is 6%. Happy to offer you 4% as opposed to 3.6% of the money so it’s lucrative for you.”

King also sent LDR International a photo of herself with NFL quarterbacks Aaron Rodgers, Tom Brady, Patrick Mahomes and Josh Allen on a Las Vegas golf course in June 2022 to demonstrate her connection to high-profile athletes, the suit states.

Detective work

Ronald Richards, a Beverly Hills attorney representing LDR International, took matters into his own hands to prevent King from gambling away what was left of his client’s funds. He alerted various Las Vegas casinos of her alleged activities and asked employees to notify him if she was spotted.

“She would literally go from one place to another,” Richards said. “I couldn’t stop her from gambling.”

Richards finally hit the jackpot when a cocktail waitress at Resorts World Las Vegas, who allegedly had been victimized by King, snapped a photo of her seated at a gaming table wearing a white cap. The attorney sent the picture to casino security officials who used facial recognition technology to identify and locate King, who was escorted off the property.

Newport Beach attorney Sara King purportedly gambling at Resort World Las Vegas in 2022 (Courtesy of Ronald Richards)

Local News |

Ex-MoviePass executive charged with embezzling to pay for Coachella event

Local News |

Job scams: How to not get burned as they continue to ramp up

Local News |

Westminster ‘money mule’ arrested in $1.8M money-laundering scheme

Local News |

Irvine man sentenced to 7 years in prison for COVID business loan scheme

Local News |

The Pill Club reaches $18.3 million Medicaid fraud settlement with California

Some money recovered

Richards has been able to recover a little less than $2 million King allegedly misused. However, he considers the funds as interest because she hasn’t made any additional payments.

King’s ex-husband, Kamran Pahlavi, who has since fled to Morocco, has substantiated allegations of King’s fraudulent activities, the lawsuit says.

Meanwhile, King, who claims to have only $11.98 in her bank account, allegedly sent an email to LDR International on Feb. 9, requesting more money so that she can make back the funds she stole, according to the suit.

Richards said he has received several proposals from dubious individuals and companies seeking to take advantage of King’s financial misdeeds. A purported concert ticket-selling company in Jacksonville, Florida, recently offered to assume King’s $10.5 million debt provided it is paid $1.5 million.

“A case like this brings weirdos out of the woodwork,” said Richards, who has reported King to the State Bar of California. “I am not going to have my client wire a penny to any internet hucksters operating or purporting to operate with Ms. King.”

Orange County Register

News Details

Newport Beach attorney accused of misappropriating $10 million to fund lavish Vegas lifestyle

Phony collateral

Detective work

Related Articles

Some money recovered

News

CONTACT INFO

QUICK LINKS

SERVICES

CURRENT NEWS