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The attorney relocated to Wynn Las Vegas and spent over $10 million on “massive fraud,” the lawsuit alleges
Feb 15, 2023 8:42am CST
A British Virgin Islands-based lender has accused a California lawyer of spending and gambling away more than $10 million that was to be used by its lending company to lend to third parties.
The Feb. 11 lawsuit cites information and belief that attorney Sara Jacqueline King used the money to gamble in Las Vegas and live “an extravagant lifestyle.”
Law360 has coverage.
The plaintiff, LDR International Ltd., provided the money to King and their company, King Family Lending, because they thought they would in turn use it to lend to professional athletes and others with significant collateral, the lawsuit says. LDR International made 97 loans totaling more than $10.2 million that the lawsuit says were never repaid.
King Family Lending is a California limited liability company incorporated in February 2020 and has its principal place of business in Orange County, California, according to the lawsuit.
The lawsuit attributes much of the missing money to King’s alleged penchant for gambling. LDR International “is informed and believes that King moved into the Wynn Las Vegas resort and hotel, lived there for six months and gambled around the clock,” according to the lawsuit, which was filed in federal court in the Central District of California .
LDR International alleges that King and her company provided forged documents for the alleged third-party loans and the collateral that allegedly secured those loans. King allegedly cited collateral, including luxury cars, yachts, jewelry, watches, bullion coins and professional sports contract earnings.
The lawsuit states that King’s ex-husband, who fled to Morocco in North Africa, “supported the plaintiff’s belief that King was involved in a massive fraud” to LDR International.
King and King Family Lending failed to repay LDR International all principal and interest payments when the loans matured, the lawsuit alleges. King falsely alleged that $6.3 million in loan repayments was “reallocated” to fund additional third-party loans, prompting LDR International to fund additional loans to King Family Lending, the lawsuit says.
King paid LDR International $2 million in interest owed when LDR International demanded payment before filing suit.
King “recently presented evidence that she has only $11.98 in her name,” the lawsuit says.
King Family Lending’s license with the California Department of Treasury Protection and Innovation became inactive in April 2022, meaning it was unlicensed for most of the time LDR International provided money for the alleged third-party loans King says the suit.
The lawsuit alleges breach of contract, fraud and civil theft.
Law360 tried to contact King via an email sent to King Family Lending but the email bounced back. The ABA Journal came to the same conclusion. The State Bar of California does not list contact information for King.