[ad_1]
(Photo by Ethan Miller/Getty Images)
A federal lawsuit has been filed against California attorney Sara King and King Family Lending LLC. According to the complaint, LDR International Ltd. invested $10+ million in King’s lending company. But despite the influx of cash, King reportedly only has $12 in her bank account.
So, where’d all the cash go?
“Plaintiff is informed and believes that King moved into the Wynn Las Vegas resort and hotel, lived there for six months, and gambled 24/7,” LDR said in its complaint.
Well, that’s not a great look.
As reported by Law360, these are the details of the scheme:
LDR began loaning money to King Lending in January 2022, with a $195,000 investment that was supposedly secured by Audemars Piguet and Richard Mille watches.
King Financial cut more deals with LDR over the next 10 months to fund loans that she said were backed by yachts and diamonds, Aston Martins and Lamborghinis. Among the biggest-ticket items, though, were supposedly sports contracts for the National Hockey League, Major League Baseball, National Football League, Major League Soccer and National Basketball Association, the complaint said.
When the loans reached maturity, though, King did not pay back LDR, the company alleged. Instead, she claimed that over $6.3 million in loans had been repaid and “redeployed” to fund more loans, according to the complaint.
“In fact, there were no loans to any third-party and, therefore, no repayment of any loans to third-parties,” the complaint said. “King falsely represented to plaintiff that a total of $19,370,000 had been loaned to third-party borrowers.”
King has paid LDR $2 million in interest but the $10+ million loan principal is still owed, according to the complaint.
This isn’t the first financial scheme King has been accused of participating in. King is named in a lawsuit alleging she failed to repay a $125,000 loan, and there’s a separate accusation she pocketed a $62,000 loan. She also has default judgment on a debt owed to Citibank.
Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter @Kathryn1 or Mastodon @Kathryn1@mastodon.social.
[ad_2]
