Larry King's Sister-in-Law Denies Affair

Larry King has filed for divorce from his seventh wife, Shawn, after thirteen years together. Did he really cheat with his wife's younger sister? INSIDE EDITION has the story.

Larry King's sister-in-law says she's not to blame for the talk show legend's sudden split from his wife Shawn.

"It's just ludicrous, really," King's sister-in-law says. "I did not have an affair with Larry."

Explosive reports claim King carried on a steamy affair with his wife's look-a-like sister, Shannon, for five years. They were spotted casually strolling together in New York City in 2005, and through the years King has showered her with lavish gifts

King is said to have bought his sister-in-law a $160,000 car and lots of luxurious items from Cartier, including a diamond necklace. His wife reportedly became enraged when she recently saw the gifts on King's credit card statement.

King is also said to have footed the bill for Shannon to live at the posh Beverly Hills Hotel for a year!

Bonnie Fuller from says, "It looks bad that Larry has showered Shawn's sister with all of these lavish gifts. Come on, how many husbands are giving their sister-in-laws fancy cars and diamond necklaces?"

Shannon is 45, five years younger than her sister. She works as an actress and model. She was quoted as saying the TV icon was just being "sweet" and "generous" with his gifts.

"Larry's been a good friend and he's been like a father to me," said Shannon.

She says she is now being unfairly targeted by her sister for their rocky relationship.

"She's singling me out. I'm tired of taking the rap for things," Shannon exclaimed.

King's wife, Shawn, the mother of his two young sons, has also faced her own allegations of infidelity. In 2008 she was accused of having an affair with her kids' baseball coach, aspiring actor Hector Penate, something she denied.

One reporter asked King, "Did you sleep with the sister?"

"No," responded King.

King denied the allegations of a family affair while heading out to dinner at The Palm steakhouse in Los Angeles last night, and he kept coy when asked about splitting from his wife of thirteen years.

"I don't know what you're talking about," said King to one reporter.

"You guys getting divorced though?" continued the reporter.

"I don't know," said King.

King was all smiles the day before the divorce news was public, at the ballpark with his boys for the Dodgers opening day.

Hours later, it was a race to the courthouse. King was the first to file divorce papers. Shawn quickly followed, filing just three minutes later.

Attorney Debra Opri tells INSIDE EDITION, "He wants his properties back, she wants sole custody. They wanted it to get to the courthouse first to say, 'I've been wronged. I want out.' "