Key Takeaways
- • Tamara King, 56, convicted of defrauding 22 Washington investors of $2.25 million through a fake real estate investment fund (Halcyon) operated between August 2009 and December 2013. The jury found her guilty on conspiracy to commit wire fraud, eight counts of wire fraud, two counts of money laundering, and three counts of filing false tax returns following an 8-day trial and five-hour deliberation on December 18, 2025.
- • King and co-defendant Paul Waln promised investors a 20% annual return over a 10-year period, claiming pooled funds would purchase and renovate an apartment building in West Seattle and fund additional real estate projects. Waln was entitled to a 1% management fee.
- • Co-defendant Paul Waln, 60, pleaded guilty to wire fraud conspiracy in June 2025 and was sentenced to 33 months in prison on October 31, 2025. King's sentencing is scheduled for March 20, 2026.
- • The scheme diverted investor capital to fund a luxury lifestyle rather than legitimate real estate acquisitions. King, formerly based in Bellevue and Kirkland, Washington, is now located in Toledo, Ohio.
- • This conviction underscores persistent vulnerabilities in private real estate fund structures, where retail investors lack transparent asset verification and regulatory oversight mechanisms common in institutional alternative investment vehicles.
Summary
Federal prosecutors in the Western District of Washington secured a conviction on December 18, 2025, against Tamara King (also known as Tamara Waln), 56, for orchestrating a multimillion-dollar investment fraud scheme that defrauded 22 victims of $2.25 million. According to the U.S. Attorney's Office, King operated a real estate investment fund called Halcyon between August 2009 and December 2013, in which she and co-defendant Paul Waln solicited investments from Seattle-area residents under the premise that capital would be pooled to purchase and renovate an apartment building in West Seattle, with subsequent deployment into additional real estate projects.
The investment structure promised victims a 20% annual return over a mandatory 10-year holding period, with Waln collecting a 1% management fee. Instead of fulfilling these obligations, King and Waln diverted investor funds to personal use, financing a luxury lifestyle while failing to execute the stated real estate projects. Following an 8-day jury trial, jurors deliberated for five hours before returning guilty verdicts on all counts: conspiracy to commit wire fraud, eight counts of wire fraud, two counts of money laundering, and three counts of filing false tax returns. U.S. District Judge Ricardo S. Martinez scheduled King's sentencing for March 20, 2026.
King's co-defendant, Paul Waln, 60, now residing in Dallas, Texas, pursued a different legal strategy. Waln pleaded guilty to wire fraud conspiracy in June 2025 and received a sentence of 33 months in prison on October 31, 2025. King, formerly residing in Bellevue and Kirkland, Washington, is currently located in Toledo, Ohio. The case demonstrates the enforcement capacity of federal authorities to prosecute complex fraud schemes targeting retail investors in alternative investment vehicles, though it also highlights the operational vulnerabilities in private real estate fund structures where investors lack transparency protections and ongoing regulatory oversight standard in institutional-grade alternative investments.
The investment structure promised victims a 20% annual return over a mandatory 10-year holding period, with Waln collecting a 1% management fee. Instead of fulfilling these obligations, King and Waln diverted investor funds to personal use, financing a luxury lifestyle while failing to execute the stated real estate projects. Following an 8-day jury trial, jurors deliberated for five hours before returning guilty verdicts on all counts: conspiracy to commit wire fraud, eight counts of wire fraud, two counts of money laundering, and three counts of filing false tax returns. U.S. District Judge Ricardo S. Martinez scheduled King's sentencing for March 20, 2026.
King's co-defendant, Paul Waln, 60, now residing in Dallas, Texas, pursued a different legal strategy. Waln pleaded guilty to wire fraud conspiracy in June 2025 and received a sentence of 33 months in prison on October 31, 2025. King, formerly residing in Bellevue and Kirkland, Washington, is currently located in Toledo, Ohio. The case demonstrates the enforcement capacity of federal authorities to prosecute complex fraud schemes targeting retail investors in alternative investment vehicles, though it also highlights the operational vulnerabilities in private real estate fund structures where investors lack transparency protections and ongoing regulatory oversight standard in institutional-grade alternative investments.
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