Ex-Brooklyn judge, real estate developer accused of scamming investors out of millions

"Prosecutors said Edward Harold King, who served as a Supreme Court justice in Brooklyn, and developer Sam Sprei told investors they could get their money back at any time, but later refused to return most of the funds, according to the U.S. attorney's office. In the meantime, Sprei transferred millions of dollars into his own bank account, prosecutors said."

"In subsequent phone calls and electronic communications, Sprei allegedly told the investors they would need to prove they had the necessary funds by depositing money into an escrow account. Sprei said the money would be overseen by a reputable third party and that the funds would not be used for any other purpose without the investors' authorization, prosecutors said. Based on that information, the investors wired $6.5 million into an account under King's name, according to the complaint."

"The investors and King, then a sitting judge, signed an agreement that promised the investors could request their money back at any point and receive it within two business days, the complaint alleges. Prosecutors said Sprei told the investors that King was a judge."

"Shortly after receiving the money, King withdrew more than $3 million from the account and wired hundreds of thousands of dollars more into an account with Sprei's name on it, according to bank records cited in the complaint. Prosecutors said neithe"

Edward Harold King, a former Brooklyn Supreme Court justice, and real estate developer Sam Sprei allegedly induced investors to wire $6.5 million for a commercial real estate opportunity in Freehold, New Jersey. Sprei allegedly claimed the investors’ funds would be held in escrow by a reputable third party and would not be used without authorization. Investors allegedly wired the money into an account under King’s name after communications and calls. King and the investors allegedly signed an agreement promising refunds on request within two business days. Prosecutors alleged King withdrew more than $3 million shortly after receiving the funds and transferred additional money to an account associated with Sprei, while most investor funds were not returned.

Read at Gothamist