A US woman who operated a fraudulent real estate investment fund with her former husband and stole $2.4 million (AUD $3.36 million) from investors has learned her fate.
Tamara King, 56, was sentenced on May 15 to 55 months in federal prison, after a jury convicted her of conspiracy to commit wire fraud and multiple counts of wire fraud, money laundering, and tax fraud.
Prosecutors say King used stolen investor funds to purchase a $121,950 (AUD $170,000) customised Model X Tesla, buy an 8.5-carat diamond ring for $49,300 (AUD $69,000), and pay off $189,775 (AUD $265,000) in personal tax debt.
“Tamara King stole that money and had cosmetic procedures. She stole that money and bought a car much nicer than we ever had,” one victim wrote in a powerful impact statement delivered at sentencing.
“Her arrogance and callous, self-centred nature enable her to believe she can get away with anything.”
King’s lawyer, Colleen P. Fitzharris, who’s an assistant federal public defender for the Western District of Washington, tells Realtor.com®: “There will be an appeal.”
According to the federal indictment, from August 2009 to December 2013, King’s now ex-husband and co-conspirator Paul Waln, 60, solicited investments in a real estate fund called Halcyon.
Waln told investors their funds would be combined to buy and renovate an apartment building in West Seattle, as well as support other real estate ventures.
Investors were told they would need to keep their money in the investment pool for at least 10 years.
Waln told investors that at the end of the 10-year period, he would return their principal investment along with earnings, which he estimated would yield a 20% annual return, per the indictment. In exchange for managing the investment fund, he would receive a 1% fee.
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Tamara King, 56, was sentenced on May 15 to 55 months in federal prison. Picture: U.S. Attorney’s Office
Prosecutors say 22 victims, most of whom were Seattle residents, collectively invested $2.25 million (AUD $3.15 million) in the fund.
How it happened
Waln and King began dating in 2012, were married in 2013, and subsequently managed the investment fund together, according to the indictment.
Prosecutors say that from February 2014 to December 2018, they conspired to misappropriate money from the fund to pay for personal expenses — and that much of the money was used to purchase big-ticket items.
The indictment says King used fund money to support her lavish lifestyle, including purchasing the customised Tesla. At trial, prosecutors produced photos of King posing with the stylish vehicle.
Under the original agreement Waln made with investors, he and King were required to distribute the investment funds to investors in 2019.
In October 2019, King informed the investors that all the money was gone, and the investment had failed, according to the indictment. All the remaining investors lost their entire investments.
People harmed by the fraud told the court that King’s theft up-ended their lives. Picture: U.S. Attorney’s Office
“This defendant stole from those who invested not just their money, but their dreams of a secure retirement,” First Assistant U.S. Attorney Neil Floyd said in a statement shared with Realtor.com.
King also failed to report over $1.6 million (AUD $2.24 million) in income over three tax years, according to the IRS. She reported $188,116 (AUD $263,000) in total income, when she actually received $1.85 million (AUD $2.59 million).
King lays blames elsewhere
At trial, King blamed Waln for the misappropriation, claiming Waln told her the “loans” were allowed.
“It is the biggest regret of my life that I was used by Paul to defraud investors and did not realise what was happening at the time,” she wrote in a letter to the judge, per the Seattle Times.
At King’s sentencing hearing, U.S. District Judge Ricardo S. Martinez said he did not believe King’s denials and attempts to pin the responsibility on her ex.
“King testified falsely, she deliberately lied on the witness stand,” the judge said. “She was the primary instigator of this fraud … for the most base motivation of all: pure greed.”
Following completion of her 55-month prison term, King will be on three years of supervised release.
Waln pleaded guilty to wire fraud conspiracy in 2025 and was sentenced to 33 months in prison.
Victims speak out
People harmed by the fraud told the court that King’s theft up-ended their lives, forcing some to postpone retirement and worry about paying for care for disabled spouses.
“She stole that money and lived in a home twice as large as we’ve ever been able to afford,” one victim wrote in a letter shared with Realtor.com. “She stole that money and paid her credit card bills from a very extravagant lifestyle. We don’t believe for one minute that she is remorseful or that she will not do it again.”
W. Mike Herrington, special agent in charge of the FBI Seattle field office, said in a statement: “For a decade, investors thought they were prudently saving their hard-earned money for retirement through a real estate fund operated by King and her husband. Instead, Ms. King drained the account to fund her lavish lifestyle.”
Prosecutors have asked the court to order King to repay more than $2 million to investors and roughly $550,000 (AUD $769,000) to the IRS.
There will be a hearing on July 24, 2026, to determine King’s restitution and forfeiture of assets.