LAS VEGAS (KTNV) — A Southern California lawyer is accused of spending more than $10.2 million at casinos on the Las Vegas Strip — money she allegedly obtained by scamming a lending company that's now suing her for fraud.
Sara King, an Orange County-based attorney for the firm King Reuben, is also the manager and president of King Family Lending, a liability company, according to court documents reviewed by Channel 13.
She's being sued by one of her firm's clients, LDR International Limited, based in the British Virgin Islands.
In court documents obtained by ABC's Dan Abrams, lawyers for LDR say the company began lending King money between January and October 2022. According to LDR, King said she was borrowing money from them to loan to third-party borrowers. King claimed she could back those loans with collateral, including things like luxury cars and jewelry, the lawsuit states.
Court documents state King also told LDR she was working on loans for athletes, because they could back the money with funds from their contracts. Below is an excerpt of one email LDR said King sent them:
"Finally, my favorite and the most secure type of loan deal has finally arrived! Lending against guaranteed sports contracts. There is a professional hockey player (NHL) who has a guaranteed contract for $3m 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.
Email sent by King on May 14, 2022
An example provided by LDR also shows how King demonstrated her ties to the sports world and relationships with athletes. This photo shows King with NFL quarterbacks Tom Brady, Patrick Mahomes, and two others during The Match event at the Wynn in June 2022.
LDR said King provided them false records of those loan deals. Because the payees names were redacted, LDR claims it could never verify where the money actually went.
The lawsuit states that LDR believes King spent the money after moving into the Wynn for six months and gambling 24/7. LDR said King provided bank statements showing she only has $11.98 to her name — and that as of Feb. 9, 2023, King was still sending them fake deals claiming to want to make back the money she's accused of stealing.
Ronald Richards, the attorney representing LDR told Channel 13 King paid back $2 million toward interest and then tried to recall a wire transfer two months after she sent it by filing a false affidavit. She has not made any further payments, Richards said.
LDR is suing for their money back, with interest, as well as attorney fees, court costs, and punitive damages.
King had until this past Friday to respond to the suit. According to court documents filed on Wednesday, King has been granted a two-week extension and has until March 28, 2023 to respond.
King was spotted on the Strip as recently as last week, Los Angeles Magazine reported. That includes returning to the Wynn, where she was removed from the property. Channel 13 reached out to Wynn Resorts, which sent the following statement.
"Ms. King has been banned from all gaming at the property. Wynn Las Vegas has also trespassed Ms. King from the premises, meaning that if Ms. King returns for any reason, she will be subject to immediate arrest pursuant to NRS 207.200."
The Wynn also told Channel 13 they followed Title 31 of the Bank Secrecy Act. That requires all casinos with a gross annual gaming revenue of at least $1 million to draft and implement a training program to ensure compliance with anti-money laundering regulations.
We also reached out to the Nevada Gaming Control Board to see if King has been blacklisted since these claims came to light. The board said she is not on the Excluded Persons List.
The board said a person must meet certain criteria before being added to that list, including:
- Prior conviction of a crime which is a felony in this state or under the laws of the United States, a crime involving moral turpitude or a violation of the gaming laws of any state
- Violation or conspiracy to violate gaming laws like failing to disclose an interest in gaming establishments which a person must get a license for or evading fees or taxes
- Notorious or savory reputation which would affect public confidence and trust that the gaming industry is free from criminal or corruptive elements
- Written order of a governmental agency which authorizes the exclusion or ejection of the person from an establishment at which gaming is conducted
NEVADA'S BLACK BOOK: A list of people who tried to game the system and lost
Several of King's family members and friends said King was also taking from them, King's friend Yumiko Sturdivant told ABC 7 in Los Angeles.
"Sara was like a big sister to me," said Sturdivant. "In January 2023, I reached out to her to catch up. That was the biggest mistake I made."
Sturdivant said King told her about an investment opportunity, but Sturdivant said she wasn't suspicious since King had never taken anything from her before.
"It was a major betrayal for me. She told me I can give her $10,000 and three days later, I would be paid $20,000," Sturdivant said. "Friday came and went and I hadn't heard back from her. Then I noticed a pattern. She was responding to me every five days with an excuse."
Sturdivant said after a month, she found out King was being sued left and right.
"I was like, 'I'm in big trouble and I'm never going to see my money again,'" Sturdivant said. "The only word that comes to me is evil. She stole from normal people like me. Hopefully, this ends soon, and if there are any other victims, don't be scared to come out and talk. Nobody should go through something like this."
Richards said at least five to six other victims have come forward so far, and LDR has provided their information to law enforcement. He said his firm is working with those victims at no cost to them.
The matter has also been referred to the California State Bar and, so far, no criminal charges have been filed.
