LAS VEGAS (KLAS) — A lawsuit filed in U.S. District Court in California details allegations of a $10 million fraud scheme that paid for a six-month gambling spree at the Wynn Las Vegas last year.
Sara Jacqueline King of Orange County is accused of falsifying loans that were never made. Instead, she used the money herself. The lawsuit, filed Feb. 11, alleges that $10,258,500 King secured through her California lending company from LDR International Limited of the British Virgin Islands.
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 said.
“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. 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 alleges. The time frame was from January 2022 to October 2022. The lawsuit doesn’t allege any wrongdoing involving Wynn Resorts.
In some cases, 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.” The lawsuit alleges breach of contract, fraud, civil theft and “account stated” — a cause of action in California that allows a creditor to sue for payment.
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 — 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 communicated with the plaintiff via email. Another photo 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.