BELLEVUE, Wash. - Federal court documents outline what U.S. attorneys describe as a multimillion-dollar real estate fraud scheme that drained tens of thousands of dollars from 22 Washington investors, many of them in the Seattle area.
Prosecutors say the scheme involved wire fraud, money laundering and tax fraud, and ultimately funded a lavish lifestyle far removed from the real estate investment returns investors were promised.
Prosecutors point to luxury spending, not investor returns
According to court filings, evidence gathered by the FBI and the IRS traces investor money to luxury purchases, including high-end jewelry, expensive cars and a five-bedroom home in downtown Bellevue.
U.S. attorneys identify Tamara King, previously known as Tamara Waln, in photos seated in a custom Tesla with pink rims and butterfly doors. The vehicle, prosecutors say, cost approximately $120,000.
King was previously married to Paul Waln, who prosecutors describe in defense trial briefs as "a con artist, a grifter, and a swindler," and a man with a "grandiose and delusional lifestyle that he believes he deserves."
The brief further states: "Just as he sold investors, Mr. Waln sold Ms. King on a bright future where he would make millions with her – his ‘Barbie wife – by his side.’"
During the mid-2010s, Paul Waln and Tamara King were marketed as a real estate power couple on the Eastside, according to evidence used in federal court.
Although the couple has since divorced, both are listed as defendants in the case. Prosecutors say the alleged scheme was a joint effort.
Indictment outlines ‘Halcyon’ investment fund
According to the original indictment, the scheme began with Paul Waln "soliciting $2.25 million from investors promising to invest their money in a real estate fund called ‘Halcyon.’"
Court documents say Waln claimed the funds would be pooled to purchase and renovate a luxury condominium in West Seattle. Investors were promised their money back, plus principal, within a decade.
Prosecutors say Tamara King entered the picture in 2013, and in 2014, the two allegedly "conspired to defraud Halycon investors by secretly funneling investors’ money from Halcyon to other businesses entities" they controlled, as well as into their personal accounts.
When investors questioned where their money went, court documents say Waln told them they would not be repaid because the project fell through after their contractor got cancer.
According to prosecutors, that explanation was false. Court records describe the cancer diagnosis as fabricated.
Among the evidence presented in court is a receipt from a fine jeweler in Miami.
Prosecutors say it shows Waln allegedly wrote a cashier’s check for a diamond ring priced at nearly $50,000.
U.S. attorneys told jurors that King "blindly drained every last dollar," according to court filings.
Defense claims King was also a victim
Defense briefs argue King was herself a victim, alleging she did not know the extent of Waln’s outstanding debt to the IRS.
The defense also claims Waln was a heavy drinker who mixed prescription medications with alcohol, gambled and threatened King multiple times.
Despite those arguments, the jury found King guilty of multiple counts of wire fraud, money laundering and tax fraud, according to court records. She could face decades in prison.
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