A courtroom scene highlighting the seriousness of financial misconduct cases.
Sara Jacqueline King, a suspended attorney from Newport Beach, was sentenced to 21 months in federal prison for a loan fraud scheme that resulted in $8.7 million in losses. King pleaded guilty to wire fraud and money laundering, and was ordered to pay nearly $8.8 million in restitution. The court highlighted her lavish lifestyle funded by fraudulent activities, while her defense sought leniency due to personal struggles. Following her prison term, King will face three years of supervised release.
During the sentencing hearing, which highlighted the impact of her fraudulent activities, Assistant U.S. Attorney Jennifer Waier argued for a more severe punishment due to the significant financial losses suffered by victims and the serious breach of trust by a licensed attorney. Waier described King’s actions as “brazen,” noting that she had maintained a lavish lifestyle funded by her fraudulent activities, including spending time living at the Wynn Las Vegas resort for six months.
In contrast, King’s attorney, Sam Cross, requested a lighter sentence of six months in prison or home confinement, attributing her actions to personal struggles, including addiction to Xanax and heavy alcohol consumption. Cross mentioned that King had taken steps towards rehabilitation, continuing therapy since her guilty plea. King’s attempt to secure employment at Nordstrom was also mentioned, though she lost the job after her legal issues were revealed.
King’s fraudulent scheme involved fabricating loan documents, falsifying agreements, and misappropriating funds meant for legitimate loans. She promised high-net-worth borrowers secured loans while never delivering, instead using borrowed money for personal expenditures, gambling, and maintaining her extravagant way of life. Among the fraudulent practices were claims of using luxury items, such as designer handbags, luxury cars, yachts, and even a vintage Avengers comic book, as collateral for loans that she never intended to fund.
Prior to her sentencing, King appeared on a podcast called “Lady Mafia” to discuss her crimes, a decision that was considered by the judge as a factor for her lengthier sentence. The consequences of her actions not only resulted in her imprisonment but also the loss of her law license and an impending disbarment.
As part of her sentencing, King has been mandated to complete three years of supervised release following her prison term, and she is required to report to prison by July 14. Additionally, King is subject to a federal civil suit that culminated in a “default judgment” against her for defrauding a lender of approximately $10.2 million.
Despite the magnitude of her actions, Cross emphasized that since her guilty plea, King had become “productive” and had been actively participating in rehabilitation efforts. Furthermore, King’s cooperation with authorities in an unrelated case against John Tamahere McCabe, who was accused of defrauding an elderly man of $1.8 million, was noted during her sentencing.
The judge’s observations about King’s lifestyle and the extent of her fraudulent activities underscored the gravity of her crimes, which involved a pattern of deceitful behavior intended to augment her wealth and personal gain at the expense of others.
The fallout from King’s actions serves as a cautionary tale about the potential for abuse in professions of trust and the serious ramifications of financial misconduct. The court’s decision to impose a prison sentence reflects the judiciary’s commitment to addressing white-collar crimes and safeguarding financial integrity within the legal profession.
Newport Beach Attorney Sentenced to Prison for Fraud
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