California lawyer Sara King will serve nearly two years behind bars after swindling investors out of nearly $9 million to fund her Las Vegas gambling addiction and luxury lifestyle, including a Porsche purchase.

At a Glance

• Newport Beach attorney Sara King was sentenced to 21 months in federal prison for wire fraud and money laundering
• King diverted $8.7 million from investors, spending it on gambling in Las Vegas and luxury purchases
• She has been ordered to pay $8,785,045 in restitution to her victims
• King’s law license has been suspended and she faces disbarment proceedings
• She pleaded guilty to the charges in July 2023 after falsely claiming to offer high-interest loans to wealthy individuals

From Attorney to Fraudster

Newport Beach attorney Sara King has been sentenced to 21 months in federal prison after orchestrating an elaborate loan fraud scheme that bilked investors out of $8.7 million. King, 41, created a company called King Lending, which purportedly offered high-interest, short-term loans to high-net-worth individuals, with the loans supposedly secured by luxury assets. The scheme attracted multiple investors who believed their money would fund legitimate lending operations with substantial returns.

Instead of funding loans as promised, King diverted the money to support her extravagant lifestyle. Court records show she spent significant amounts gambling at the Wynn Las Vegas resort, where she lived for extended periods. She also used investor funds to purchase luxury items, including a Porsche Taycan worth $132,156. U.S. District Judge David O. Carter ordered King to pay $8,785,045 in restitution to her victims, reflecting the magnitude of her deception.

Legal Consequences and Addiction Defense

King pleaded guilty to wire fraud and money laundering charges on July 24, 2023. While facing a maximum sentence of 20 years in prison, her defense team argued for leniency, citing addiction issues and personal challenges. Her attorney, Sam Cross, presented evidence of King’s substance abuse problems, including Xanax dependency and excessive alcohol consumption, as mitigating factors in her criminal behavior.

In addition to the prison sentence, King will serve three years of supervised release. Her professional life has been irreparably damaged, with her law license currently suspended pending disbarment proceedings. According to court documents, King attempted to rebuild her life after her arrest, checking into a rehabilitation facility and seeking employment at Nordstrom, only to lose the job when her legal troubles became known to her employer.

The Elaborate Deception

King’s fraud operation involved sophisticated deception to maintain investor confidence. She falsified loan documents and created elaborate stories about her lending business, claiming to work with celebrities and professional athletes. In reality, not a single loan was ever funded with the investors’ money. LDR International Limited, one of her victims, filed a civil lawsuit against King, accusing her of defrauding them of approximately $10.2 million through falsified loan documentation.

During court proceedings, King attempted to deflect some blame, claiming her ex-husband had pressured her to gamble the funds. She also sought to mitigate her sentence by cooperating with prosecutors in a separate case against John Tamahere McCabe. Judge Carter, however, emphasized the significant financial harm caused, stating simply, “This is a lot of money.” The sentencing reflects the serious nature of white-collar crime and its impact on trusting investors who lost substantial sums.

A Cautionary Tale

King’s downfall serves as a stark reminder of how quickly professional success can unravel when ethical boundaries are crossed. Prior to her criminal activities, King was a licensed attorney with a promising career. Her case highlights the devastating consequences of gambling addiction and the abuse of professional trust. Before her sentencing, King appeared on the “Lady Mafia” podcast to discuss her crimes, perhaps seeking to explain her actions to the public.

Despite King’s relatively short prison sentence compared to the maximum penalty, the financial restitution order of nearly $9 million ensures she will face the consequences of her actions for years to come. The case underscores the importance of due diligence when making investments and the particular harm caused when trusted professionals abuse their positions to defraud clients and investors.