A California lawyer has been sentenced to 21 months in federal prison after admitting to stealing close to $9 million from clients to fund a gambling addiction in Las Vegas, all while flaunting a lavish lifestyle.
Sarah Jacqueline King received this sentence on Monday after pleading guilty to wire fraud and money laundering charges from 2023. In addition, she was ordered to pay nearly $8.8 million in restitution; she could have faced a sentence of up to 20 years.
King’s request for a mere six months was denied by US District Judge David Carter, who remarked during the May 5 hearing that the amount involved was staggering and pointed out the deep sense of betrayal felt by victims.
At 41, King operated under the name King Family Lending LLC, providing short-term, high-interest loans to professional athletes, celebrities, and other affluent individuals. She reportedly secured these loans with high-value assets from clients, such as luxury handbags, jewelry, and sports contracts.
Between January 2022 and January 2023, King recruited investors to fund these loans by using the same investment as collateral, creating a web of deceit. However, according to the US Law Office in Central California, she never initiated any loans; instead, she channeled the funds into gambling in Las Vegas and maintaining her extravagant lifestyle.
Assistant U.S. Attorney Jennifer L. Weir referred to her as the “Lady Mafia.” During her gambling spree, King lost around $8.7 million, mostly at a Las Vegas casino, and spent an additional amount while living at the Wynn Las Vegas Resort.
She also admitted to withdrawing over $132,000 from her business account to purchase a luxury Porsche electric sports car. Additionally, King is facing a lawsuit from LDR International Limited for allegedly forging loans totaling millions.
The lawsuit claims that over ten months in 2022, King received 97 loans worth $10.2 million while misrepresenting her connections with high-profile NFL players like Tom Brady and Patrick Mahomes.
King asserted in court that her ex-husband pressured her to gamble the loan funds to pay off debts to the international lender, claiming he would accompany her to casinos.
Her defense team highlighted issues like her abuse of Xanax and heavy drinking, suggesting these contributed to her gambling problems and distance from supportive friends and family.
Defense attorney Sam Cross expressed that King is currently humbled and feeling the weight of her actions, noting that she must start over from scratch at 41 after losing everything.
