A former real estate broker from Washington state has been convicted in federal court for her role in a fraudulent investment scheme that resulted in more than $2 million in losses for local investors. Tamara King, also known as Tamara Waln, was found guilty of conspiracy to commit wire fraud, eight counts of wire fraud, two counts of money laundering, and three counts of filing false tax returns after an eight-day trial at the U.S. District Court in Seattle. The verdict was announced by U.S. Attorney Charles Neil Floyd.
King, 56, who now lives in Toledo, Ohio but previously resided in Bellevue and Kirkland, Washington, managed the investment fund with her husband Paul Waln after their marriage in 2013. Jurors deliberated for five hours before reaching their decision. Sentencing is scheduled for March 20, 2026.
Paul Waln, 60, currently living in Dallas, Texas, pleaded guilty to wire fraud conspiracy earlier this year and received a sentence of 33 months on October 31.
Court records show that between August 2009 and December 2013, Waln solicited investments totaling $2.25 million from twenty-two individuals—most from Seattle—for a real estate fund called Halcyon. Investors were told their money would be used to purchase and renovate an apartment building in West Seattle and other projects. They were required to keep their funds invested for ten years with the promise of a return of principal plus earnings estimated at 20 percent annually. Waln was entitled to a one percent management fee.
After marrying King in 2013, the couple jointly managed the fund and began transferring large sums from it into their own accounts between February 2014 and December 2018. Some transfers were labeled as “loans” internally but were never repaid or disclosed to investors.
The pair had an obligation to return investor funds by 2019 but had already depleted all assets by late 2018. In December that year, Waln falsely informed investors about delays due to a contractor’s supposed cancer diagnosis—a claim that was untrue.
In October 2019, King notified investors that all funds were lost and the investment had failed.
King also failed to report over $1.6 million in income across three tax years; she reported only $188,116 when actual receipts totaled $1.85 million.
At trial King claimed she acted on Waln’s instructions regarding the unauthorized loans. Assistant United States Attorney Seth Wilkinson argued otherwise: Waln “brought the money in the front door and King stole it out the back… She took $50,000 for an eight-and-a-half carat diamond ring and more than $120,000 for her Tesla.” Prosecutors said King used investor funds for personal purchases without disclosure or repayment: “She blindly drained every last dollar,” Assistant United States Attorney Cindy Chang told jurors.
All remaining investors lost their entire investments; total losses amounted to $2.4 million.
The FBI and Internal Revenue Service Criminal Investigation (IRS-CI) led the investigation into this case while prosecution was handled by Assistant United States Attorneys Seth Wilkinson, Cindy Chang, and Jehiel Baer.
Conspiracy to commit wire fraud and wire fraud each carry maximum sentences of twenty years imprisonment; money laundering is punishable by up to ten years; filing a false tax return can result in up to three years imprisonment.
