LAS VEGAS (KLAS) – A California woman has been accused of defrauding a lending company of more than $10 million while using the money to fund a six-month gambling spree at a Las Vegas resort last year.
Sara Jacqueline King, of Orange County, is accused of fraudulently securing $10,258,500 in loans from LDR International Limited of the British Virgin Islands (LDR) between January and October 2022, according to a lawsuit filed by LDR on Feb. 11. The lawsuit alleges that King secured the loans through her own California company, King Lending, claiming she was providing them to third-party borrowers.
LDR International alleges that 97 loans to third-party borrowers were simply made up. And now, King is saying she’s broke.
“King has recently provided evidence she only has $11.98 to her name,” according to the lawsuit.
She also crossed state lines in committing fraud, the lawsuit alleges.
“King spent the majority of the funds loaned by Plaintiff to King Lending to gamble in Las Vegas, fund an extravagant lifestyle, and for other personal uses by King,” reads a portion of the lawsuit. “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.”
The lawsuit doesn’t allege any wrongdoing involving Wynn Resorts.
In some cases, LDR claims the phony loans were presented with documentation that they had been secured with collateral including “luxury cars, jewelry, watches, antique precious metal coins, designer handbags, boats, yachts, and earnings from guaranteed sports contracts with representations regarding salary and bonus amounts.”
Communication about one loan even describes a comic book used as collateral: “The Avengers #1 (Marvel, 1963) CGC NM-9.2 Off-white to white pages, Comic Book, Market Value: $50k; Firesale: $27k; Loan Request: $25k…”
Another cited guaranteed money from a sports contract: “NBA Contract guaranteed 4.5m for 3 years, 21 years old, Toronto Raptors player. I happened to be at the NBA summer league games and got this one! Bonus is in January for $500k.”
Nearly 30 sports contracts — allegedly for players in the NFL, NHL, MLB and NBA — were listed as “purported collateral” in the loans.
But the loans were just a cover for King using the money herself, according to the lawsuit.
“In connection with each of the 97 loans from Plaintiff to King Lending, King made various intentionally false written representations regarding the third-party loans, collateral for the third-party loans, and funding of the third-party loans, as detailed herein,” according to the lawsuit.
The lawsuit included several photos of King, who had communicated with LDR via email. One of the photos included in the lawsuit shows King with four NFL quarterbacks — Aaron Rogers, Tom Brady, Patrick Mahomes and Josh Allen — in a photo believed to have been taken during “The Match” golf tournament in Las Vegas.
LDR is accusing 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.