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.
Contrary to what Sprei had told the investors and what King had agreed to, according to the indictment, the former judge improperly wired millions of dollars out of the account — including $850,000 to an account in Sprei’s name, according to the complaint.
Two months later, when the investors asked for their money back, King said he would have his lawyer deposit the funds with an unspecified court if the investors agreed not to bid on the property, according to the complaint.
Over the next month, Sprei returned $1,500,000 to investors, but the remaining $5 million is allegedly unaccounted for.
The complaint also said that federal prosecutors and Internal Revenue Service investigators are looking at Sprei and King for their roles in other schemes involving similar tactics.
In his misconduct investigation by the state court system, King denied similar allegations. Rules prohibit sitting judges from maintaining attorney escrow accounts and from practicing law as an attorney.
This is a developing story. Check back for updates.