A former real estate professional who ran a fraudulent investment fund with her ex-husband was sentenced Friday to 55 months in prison after a jury found her guilty of wire fraud, money laundering and tax fraud in a scheme that stole more than $2 million from 22 victims, mostly Seattle residents.
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Tamara King (formerly Tamara Waln) currently lives in Ohio, but when she met and married Paul Waln, she was a real estate agent serving Washington’s Bellevue and Kirkland markets. Mr Waln ran a real estate fund called Halcyon from August 2009 to December 2013. During that time, Mr. Waln convinced his victims to invest $2.25 million, which he was able to pool and use for real estate projects, including the purchase and renovation of an apartment building in West Seattle.
Investors in the fund are required to leave their money in the pool for 10 years, at which point Waln said they will receive both their principal and an estimated annual investment return of 20%, less his 1% management fee.
After marrying Mr. King, the two jointly managed the fund and conspired to embezzle the funds by calling withdrawals “loans.” However, the funds were never repaid and investors were never notified of the loans, according to a statement from the U.S. Attorney’s Office for the Western District of Washington.
When the investment funds were scheduled to be distributed in 2019, Mr. King told investors that the business had failed and all the funds were gone. Lawyers allege that King spent investors’ money on purchases including an 8.5-carat diamond ring and a $120,000 Tesla.
“She blindly spent every last dollar,” Assistant U.S. Attorney Cindy Chan told jurors.
According to My Northwest, U.S. District Judge Ricardo S. Martinez said during Waln’s trial that King, who was responsible for the embezzlement, refused to take responsibility.
“Dr. King gave false testimony, and she knowingly lied on the witness stand… She was the primary instigator of this fraud… for the most despicable motive: pure greed,” Judge Martinez said.
Waln, who now lives in Texas, pleaded guilty to wire fraud conspiracy in June 2025 and was sentenced to 33 months in prison in October.
First Assistant U.S. Attorney Charles Neal Floyd said, “This defendant stole not only her own money, but the dreams of a secure retirement from those who had invested in her. To this day, she continues to try to blame others for her actions, for which she was convicted on 14 federal felonies. This significant prison sentence should send a message to other fraudsters that we will investigate and hold these defendants accountable.”
