News Summary
Sara Jacqueline King, a Newport Beach attorney, has been sentenced to 21 months in federal prison for her role in a fraudulent $9 million hard money lending scheme. Convicted of wire fraud and money laundering, King misappropriated investors’ funds to support her gambling addiction and lavish lifestyle. She operated through King Family Lending LLC, promising high returns while actually squandering millions. Victims include notable figures who lost substantial sums. Following her prison term, King will face three years of supervised release.
Newport Beach – Sara Jacqueline King, a Newport Beach attorney, has been sentenced to 21 months in federal prison for her role in a fraudulent $9 million hard money lending scheme. Convicted of wire fraud and money laundering, King was ordered by U.S. District Court Judge David Carter to pay $8,785,045 in restitution to her victims.
King operated through a business named King Family Lending LLC, where she offered high-interest loans secured by client assets, such as luxury goods and car titles, as collateral. However, federal prosecutors revealed that King did not initiate or fund any of the alleged loans. Instead, she misappropriated the victim’s investments to support her gambling addiction and maintain an extravagant lifestyle.
Throughout her scheme, which lasted from January 2022 to January 2023, King reportedly squandered between $6 to $7 million at gambling establishments, particularly at Wynn Las Vegas, where she resided in a high-end suite for six months. In an alarming display of her spending habits, King engaged in a $10 million gambling spree and purchased a Porsche Taycan sports car costing $132,156, using investor funds to do so.
Among the prominent victims of King’s fraudulent activities were Laurent Reiss, who lost over $8 million, and Pasadena trauma surgeon Amal Obaid-Schmid along with her husband Stephen, who lost their life savings of $270,000. The fallout from her actions was severe, affecting not only her clients but also King’s personal life; her former husband, Iranian Prince Kamran Pahlavi, expressed disbelief upon learning of the extent of her deception and subsequently left the United States for Morocco.
The fraud scheme was characterized by promises of quick returns of 10 percent on investments, all tied to loans that had never been executed. King further enhanced her persona as a wealthy figure through extravagant expenditures, including hiring a butler specifically for her dog and attending elite events featuring NFL players.
As her lavish lifestyle crumbled, King characterized her situation as a “nightmare” and recognized her gambling addiction as a significant factor in her poor decision-making. She admitted to battling with an addiction to gambling and the drug Adderall, both of which contributed to her actions that led to the fraud.
In response to her misconduct, King has been suspended from practicing law by the California Bar. In addition to her prison sentence, King has cooperated with federal authorities, leading to charges against another conspirator, John Tamahere McCabe, who scammed an elderly man out of $1.8 million.
Following her release from prison, King will be subject to three years of supervised release. She is scheduled to commence her sentence on July 14.
This high-profile case serves as a cautionary tale about the potential consequences of unchecked gambling addiction and the ethical responsibilities of legal professionals.
Deeper Dive: News & Info About This Topic
HERE Resources
Alex Mashinsky Sentenced to 12 Years for Fraud
Newport Beach Attorney Sentenced for Loan Fraud Scheme
Newport Beach Attorney Sentenced to Prison for Fraud
Additional Resources
- Orange County Register
- Wikipedia: Fraud
- New York Post
- Google Search: wire fraud
- Los Angeles Times
- Google Scholar: legal ethics
- ABA Journal
- Encyclopedia Britannica: Money Laundering
- People
- Google News: Sara King
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
