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Sara King, a formerly respected lawyer and lender in California, was just sentenced to serve 21 months in federal prison after scamming her clients out of a whopping $8.7 million. According to court records, King admitted responsibility and pleaded guilty to money laundering and wire fraud in April. Then, in May, her sentence was handed down by federal judge U.S. District Judge David Carter.
Upon serving out those 21 months in prison, King has been ordered to remain on supervised release for at least three years. This reduced sentence was made possible thanks to a plea agreement King made with prosecutors.
Court records indicate Sara King used her business, King Family Lending, to offer short-term, high-interest loans. Her target customers were high-net-worth individuals whom she thought she could hit for big scores. These clients included professional athletes, celebrities, and successful entrepreneurs. King Family Lending would offer these loans, but requested the clients to put up their assets as collateral. These assets often included luxury items like designer handbags, watches, future earnings from guaranteed contracts, and even yachts.
Next, the business recruited investors to fund the loans, claiming the investments were secure due to the collateral. If the client defaulted on the loan later, then the business offered to pay the investor in full.
Business profits were earned when the loans were successful, and King Family Lending received a percentage of the interest on the loans.
This type of business model is effective, but King wasn’t exactly following protocol. Instead of using the investors’ money to fund loans, she started using it on her own personal wants and needs.
Around the time that her business was really starting to bring in investor’s money, King admitted to becoming addicted to Xanax. Her lawyer also explained to the court that she became increasingly addicted to gambling. These two issues made her more and more isolated from her family and friends. Eventually, they motivated her to start stealing more and more money from potential business partners.
By 2023, investors started to catch on to what was happening. LDR International filed a lawsuit against her, claiming she defrauded their company out of at least $10.2 million. King failed to show up in court, so a default judgment was ordered.
Money laundering is a federal crime that’s punishable by up to 20 years in federal prison in Nevada. A conviction can also lead to fines of up to $500,000, asset forfeiture, and restitution orders. Wire fraud is also a federal crime that’s punishable by up to 20 years in federal prison.
King was given a very light sentence, likely in part due to her legal team’s work at securing a favorable plea deal for their client. Plea deals are appropriate when you know the prosecution has enough evidence against you to secure a conviction, your defense options are limited, and you’re likely to receive a guilty sentence. Plea deals can often lead to reduced criminal charges and lighter sentences, but it’s important to only accept this type of deal if you’ve consulted with an attorney.
Contact our team of defense attorneys now by filling out our online form or calling us at (702) 623-6362 with your legal questions.
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