A Washington state lady who operated a fraudulent actual property funding fund together with her former husband and stole $2.4 million from traders has discovered her destiny.
Tamara King, 56, was once sentenced on Would possibly 15 to 55 months in federal jail, after a jury convicted her of conspiracy to dedicate cord fraud and more than one counts of cord fraud, cash laundering, and tax fraud.
Prosecutors say King used stolen investor budget to buy a $121,950 custom designed Type X Tesla, purchase an 8.5-carat diamond ring for $49,300, and repay $189,775 in non-public tax debt.
“Tamara King stole that cash and had beauty procedures. She stole that cash and acquired a automotive a lot nicer than we ever had,” one sufferer wrote in a formidable affect observation delivered at sentencing. “Her conceitedness and callous, self-centered nature allow her to consider she will be able to escape with the rest.”
King’s lawyer, Colleen P. Fitzharris, who is an assistant federal public defender for the Western District of Washington, tells Realtor.com®: “There will likely be an attraction.”
In step with the federal indictment, from August 2009 to December 2013, King’s now ex-husband and co-conspirator Paul Waln, 60, solicited investments in an actual property fund known as Halcyon.
Waln instructed traders their budget can be blended to shop for and renovate an rental development in West Seattle, in addition to fortify different actual property ventures.
Traders had been instructed they might wish to stay their cash within the funding pool for no less than 10 years.
Waln instructed traders that on the finish of the 10-year duration, he would go back their important funding in conjunction with profits, which he estimated would yield a 20% annual go back, in line with the indictment. In alternate for managing the funding fund, he would obtain a 1% charge.
Prosecutors say 22 sufferers, maximum of whom had been Seattle citizens, jointly invested $2.25 million within the fund.
Within the true property rip-off
Waln and King started relationship in 2012, had been married in 2013, and therefore controlled the funding fund in combination, consistent with the indictment.
Prosecutors say that from February 2014 to December 2018, they conspired to misappropriate cash from the fund to pay for private bills—and that a lot of the cash was once used to buy big-ticket pieces.
The indictment says King used fund cash to fortify her lavish way of life, together with buying the custom designed Tesla. At trial, prosecutors produced footage of King posing with the fashionable car.
Underneath the unique settlement Waln made with traders, he and King had been required to distribute the funding budget to traders in 2019.
In October 2019, King knowledgeable the traders that the entire cash was once long past, and the funding had failed, consistent with the indictment. All of the closing traders misplaced their complete investments.
“This defendant stole from those that invested no longer simply their cash, however their desires of a safe retirement,” First Assistant U.S. Legal professional Neil Floyd stated in a observation shared with Realtor.com.
King additionally did not record over $1.6 million in source of revenue over 3 tax years, consistent with the IRS. She reported $188,116 in overall source of revenue, when she in fact won $1.85 million.
King blames crimes on ex-husband
At trial, King blamed Waln for the misappropriation, claiming Waln instructed her the “loans” had been allowed.
“It’s the greatest remorseful about of my existence that I used to be utilized by Paul to defraud traders and didn’t notice what was once taking place on the time,” she wrote in a letter to the pass judgement on, in line with the Seattle Occasions.
At King’s sentencing listening to, U.S. District Pass judgement on Ricardo S. Martinez stated he didn’t consider King’s denials and makes an attempt to pin the accountability on her ex.
“King testified falsely, she intentionally lied at the witness stand,” the pass judgement on stated. “She was once the main instigator of this fraud … for probably the most base motivation of all: natural greed.”
Following final touch of her 55-month jail time period, King will likely be on 3 years of supervised liberate.
Waln pleaded accountable to cord fraud conspiracy in 2025 and was once sentenced to 33 months in jail.
Sufferers discuss out
Other people harmed by means of the fraud instructed the courtroom that King’s robbery upended their lives, forcing some to delay retirement and fear about paying for take care of disabled spouses.
“She stole that cash and lived in a house two times as massive as we’ve ever been in a position to find the money for,” one sufferer wrote in a letter shared with Realtor.com. “She stole that cash and paid her bank card expenses from an excessively extravagant way of life. We don’t consider for one minute that she is remorseful or that she is not going to do it once more.”
W. Mike Herrington, particular agent in control of the FBI Seattle box administrative center, stated in a observation: “For a decade, traders concept they had been prudently saving their hard earned cash for retirement thru an actual property fund operated by means of King and her husband. As a substitute, Ms. King tired the account to fund her lavish way of life.”
Prosecutors have requested the courtroom to reserve King to pay off greater than $2 million to traders and kind of $550,000 to the IRS.
There will likely be a listening to on July 24, 2026, to resolve King’s restitution and forfeiture of belongings.
