A former employee of a Los Angeles-based company is facing a lawsuit from her former employer after allegedly spending more than $10 million of company funds on a six-month gambling and partying spree at the Wynn Las Vegas.
According to the lawsuit filed in California federal court on February 11th, Sara Jacqueline King of Orange County is accused of falsifying millions of dollars’ worth of loans from the British Virgin Islands firm LDR International Limited.
Court records indicate that from January 2022 to October 2022, the company granted approximately 100 loans to King Family Lending, which is King’s self-named lending service. The lawsuit alleges that while the funds were intended for third-party borrowers, these borrowers were in fact fictional.
The lawsuit claims the fake loans were presented with documentation that was supposed to be from the borrowers, showing they had been secured with collateral. But no collateral was ever put up.
“The purported loans from King Lending to the third-party borrowers were purportedly secured by various forms of collateral, including but not limited to luxury automobiles, boats, yachts, jewelry, watches, precious metal coins, and the earnings from guaranteed professional sports contracts,” the lawsuit states.
“King and King Lending provided Plaintiff, and its agent and representative, Laurent R., with false and fabricated loan documents between King Lending and the purported third-party borrowers, including ‘Secured Promissory Note,’ with name and other identifying information of the third-party borrower redacted,” the lawsuit alleges.
Instead, “King moved into the Wynn Las Vegas resort and hotel, lived there for six months, and gambled 24/7,” the complaint says, adding that King’s ex-husband, Kamran Pahlavi, “has substantiated” LDR’s accusations and fled to Morocco.
According to the Daily Beast, court documents show Pahlavi filed for divorce from King in late December, citing irreconcilable differences.
Several photographs of King are included in the claim, according to the lawsuit, which King sent the company in “an effort by King to increase Plaintiff’s trust and confidence in King in terms of her connections, lifestyle, and connections to high-profile athletes as part of her fraud and scheme.”
One photo shows King with NFL quarterbacks — Aaron Rogers, Tom Brady, Patrick Mahomes and Josh Allen.
The picture appears to have been taken during “The Match,” a televised golf exhibition between the NFL stars that happened last summer at the Wynn Golf Club in Las Vegas.
That golf club is connected to the resort where LDR alleges King lived for six months.
“They show the lavish lifestyle she was living, jewelry, cars, and the image she was trying to portray, as well as being a successful California licensed attorney,” the filing said.
According to the lawsuit, almost all the $10.2 million King received from LDR has been depleted and King says she is now broke.
“King has recently provided evidence she only has $11.98 to her name,” according to the lawsuit.
As recently as this month, however, King is still asking LDR for more money “to make back the money she has stolen,” court documents show.
The lawsuit accuses King of breach of contract, fraud, civil theft and “account stated” — a cause of action in California that allows a creditor to sue for payment.
The Daily Beast reports King could have other accusers, including ex-friend Amal Obaid-Schmid and her husband Steffen, who claim they invested $410,000 in King’s alleged scheme promising high returns for funding third-party loans and were never repaid. Another former pal, Yumi Sturdivant, told The Daily Beast that she recently reconnected with King only to have attorney swindle $10,000 from her.
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