News Summary
Sara Jacqueline King, a Newport Beach attorney, has been sentenced to 21 months in federal prison for defrauding investors out of $8.7 million. Following her guilty plea, U.S. District Judge David O. Carter highlighted the severity of the fraud and King’s lavish spending, which included luxury cars and stays at high-end resorts. Victims expressed deep betrayal, and King has been ordered to repay nearly $8.8 million to her victims, alongside a mandatory disbarment.
Newport Beach – Sara Jacqueline King, a Newport Beach attorney, has been sentenced to 21 months in federal prison for defrauding investors out of $8.7 million. The sentencing took place on May 5, following King’s guilty plea in July 2023 to charges of wire fraud and money laundering. U.S. District Judge David O. Carter ruled that the scheme not only resulted in a significant financial loss but also funded a lavish lifestyle that included expensive jewelry and luxury cars.
The court described King’s fraudulent activities as particularly egregious, highlighting the elaborate deception employed to ensure investors believed their funds were secured by high-value assets, which ultimately did not exist. King’s defense argued for a shorter sentence, citing her substance abuse issues and gambling addiction, but the request was denied by Judge Carter due to the severity of her crimes.
King’s fraudulent scheme spanned from January 2022 to January 2023, during which she recruited investors under the pretense of providing secured loans to high-profile figures, including celebrities and athletes. Instead of using the funds as promised, King diverted a substantial portion to finance a six-month stay at the Wynn Las Vegas resort and sustained significant gambling losses, estimated between $6 million and $7 million.
In addition to gambling, King purchased a luxury vehicle, specifically a $132,156 Porsche Taycan electric sports car, using the funds obtained from her victims. Prosecutors pointed out that King had previously referred to herself as “Lady Mafia” during a podcast, underscoring a lack of remorse for her actions.
Victims expressed feelings of betrayal and distress, describing King’s actions as an elaborate scheme based on lies that dismantled their trust and peace of mind. One investor noted the profound impact of her deceitful actions on their life.
King’s scheme involved sending fake documents to investors and collaborating with LDR International Limited, a lender based in the British Virgin Islands that has since filed a lawsuit against her for her fraudulent activities. These actions directly contributed to the financial distress of the investors involved, who expected to receive returns based on King’s assurances of security.
In a past case separate from her own, King assisted prosecutors in securing a conviction against another fraudster, John McCabe, who had scammed an elderly man. However, this previous cooperation did not alleviate the consequences of her own fraudulent activities.
As part of her sentencing, King has lost her law license and is subject to mandatory disbarment following her guilty plea. Despite her attempts to return to a semblance of normalcy after pleading guilty, her job at Nordstrom fell through once the case gained public attention.
Judge Carter ordered King to repay $8,785,045 in restitution to her victims, alongside imposing three years of supervised release upon her eventual release from prison. While King is expected to surrender to prison by July 14, 2025, the long-term effects of her fraudulent actions continue to linger among her victims and the wider community.
U.S. Attorney Jennifer Waier noted that King had misused her legal expertise to exploit the trust of the public, making her actions particularly reprehensible. The case serves as a reminder of the potential for betrayal inherent in financial dealings and highlights the severe consequences of fraud against investors.
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Additional Resources
- OC Register: Newport Beach Attorney Sentenced
- LA Times: Contractor Faces Wage Theft Allegations
- My News LA: Suspended Newport Beach Attorney Gets 21 Months
- Google Search: Newport Beach fraud
- Patch: OC Attorney Who Scammed $8.7M Sentenced
- Encyclopedia Britannica: Newport Beach fraud
- The Real Deal: Newport Beach Principal Gets Probation
