Former Real Estate Professional Convicted in $2.4M Investor Fraud Scheme

A former real estate professional who operated a real estate investment fund was convicted in U.S. District Court in Seattle of conspiracy to commit wire fraud and multiple counts of wire fraud, money laundering, and tax fraud. 

Tamara King, aka Tamara Waln, 56, of Toledo, Ohio, previously resided in Bellevue and Kirkland, Washington. 

The jury also convicted King of eight counts of wire fraud, two counts of money laundering, and three counts of filing a false tax return after an eight-day jury trial. Jurors deliberated for five hours before reaching the guilty verdict. U.S. District Judge Ricardo S. Martinez scheduled sentencing for March 20, 2026.

King’s co-defendant Paul Waln, 60, now of Dallas, Texas, pleaded guilty to the wire fraud conspiracy in June 2025 and was sentenced to 33 months in prison on October 31, 2025.

Court records say that between August 2009 and December 2013, Waln solicited investments in a real estate fund called Halcyon. 

Twenty-two victims, most of whom were Seattle residents, invested $2.25 million in the fund. Waln told investors their funds would be pooled to purchase and renovate an apartment building in West Seattle and then used for other real estate projects. Investors were required to leave their money in the investment pool for ten years. Waln said that at the end of the 10 years, Waln would return the investment principal and earnings, which he estimated amount to a 20 percent annual return. Waln was entitled to receive a 1% fee for managing the investment fund.

In 2013, Waln married King, who was also a real estate agent. Waln and King then jointly managed the investment fund. Between February 2014 and December 2018, they conspired to misappropriate money from the fund to pay their personal expenses. 

The pair secretly transferred hundreds of thousands of dollars at a time from the fund to their management company and then transferred the money to King’s personal accounts. In some instances, they wrote secret memos characterizing these transfers as “loans,” but the money was never repaid. Investors were never told about the “loans.”

Under the terms of the investment, Waln and King were required to distribute the investment funds to investors in 2019. But by the end of 2018, they had misappropriated all the money. In December 2018, Waln sent investors a letter falsely claiming that the fund’s general contractor had been diagnosed with cancer. Waln told investors that this would result in a two-to-three-year delay before he would be able to return investors’ money. The contractor in question never had a cancer diagnosis.

Finally, in October 2019, King informed the investors that all the money was gone, and the investment had failed. All the remaining investors lost their entire investments.

In addition, King failed to report over $1.6 million in income over three tax years. For those three tax years, King reported $188,116 in total income, when she actually received $1.85 million. 

At trial, King blamed Waln for the misappropriation, claiming Waln told her the “loans” were allowed. Assistant United States Attorney Seth Wilkinson told the jurors that the couple acted as a team. Waln “brought the money in the front door and King stole it out the back. … She took $50,000 for an 8 and a half carat diamond ring and more than $120,000 for her Tesla.” Prosecutors noted that King transferred investor money to accounts she controlled so that she could buy what she wanted with the investors’ money. In all investors lost $2.4 million. “She blindly drained every last dollar,” Assistant United States Attorney Cindy Chang told jurors.

Conspiracy to commit wire fraud, and wire fraud are punishable by up to twenty years in prison. Money laundering is punishable by up to ten years in prison. Filing a false tax return is punishable by up to three years in prison.

The case is being investigated by the FBI and Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson, Cindy Chang, and Jehiel Baer.

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