"Federal prosecutors levied charges Wednesday against a former Brooklyn judge and a real estate businessman who allegedly worked together to swindle millions from investors in a property sale scheme. The criminal charges follow Brooklyn Supreme Court Justice Edward Harold King's resignation from the bench in February after being investigated by the court system. Federal prosecutors in the Eastern District of New York allege Brooklyn real estate investor Sam Sprei and King worked together in numerous schemes to swindle investors by receiving funds in King's attorney escrow account as the opening salvo in a real estate deal, demanding the investors end their involvement in the investment, and refusing to return millions based on false excuses."
"As alleged, the defendants stole millions of dollars from investors by cynically leveraging King's position as a sitting judge to lend false legitimacy to supposed investment opportunities, U.S. Attorney for the Eastern District of New York Joseph Nocella said in a statement. Federal agents have taken the two men into custody. It was not clear whether King had legal representation. Sprei's lawyer did not immediately return a request for comment."
"The charges focus on one deal for commercial property in Freehold, NJ, from early 2025, in which Sprei asked two bidders to show their liquidity by putting $6.5 million in escrow a process that requires investors to be able to collect their funds if they demand it back. A court notice published about the property sale only set the required escrow deposit of $250,000. Prosecutors said King worked as the escrow agent a fact that Sprei allegedly presented to the investors as a measure of his independence and credibility as a New York judge."
Federal prosecutors charged a former Brooklyn judge and a real estate investor with an alleged property sale scheme that targeted investors for millions of dollars. The charges claim the pair worked together by using the judge’s authority to provide false legitimacy to investment opportunities. Prosecutors allege investors were induced to send funds into the judge’s attorney escrow account as an initial step in a real estate deal. The scheme allegedly involved demanding investors withdraw from the investment and refusing to return funds using false explanations. Federal agents took both defendants into custody. The allegations center on a commercial property deal in Freehold, New Jersey, where escrow deposits were presented as liquidity and credibility measures, but prosecutors say millions were improperly wired out of the escrow account.
#federal-criminal-charges #real-estate-fraud #escrow-schemes #judicial-corruption #investor-swindling
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