A former Kings County Supreme Court justice and his accomplice were charged with wire fraud conspiracy at the federal courthouse in Brooklyn on May 13.
The defendant, Edward Harold King, along with his accomplice Sam Sprei (also known as “Yechiel Sprei,” “Shimon Sprei,” and “Eli Shapiro,”) were arrested together and scheduled to appear before U.S. Magistrate Judge Clay Kaminsky later that day.
The complaint against the defendants stated that Sprei and King engaged in multiple fraudulent schemes, specifically targeting real estate investors. They deceived victims by soliciting investments in fake opportunities, claiming that the funds could be easily returned if the investors chose to withdraw. However, they later refused to return the money using false reasons and misappropriated a significant portion for themselves.
One example in the complaint involved Sprei presenting two investors with a chance to buy commercial real estate in Freehold, N.J. He told the investors they needed to show “proof of liquidity” by depositing money in escrow. Sprei claimed King was an independent escrow agent and a judge. He further misled the investors by assuring them they could retrieve their deposits within two business days if they decided not to proceed.
The investors transferred $6.5 million to a bank account in King’s name. Shortly after, millions were withdrawn or transferred to Sprei’s account. When the investors sought their funds back, King provided false excuses for not returning the money. Only $1.5 million was eventually returned, leaving the investors without the majority of their investment.
If convicted, King and Sprei could face up to 20 years in prison. The prosecution is being managed by the U.S. Attorney’s Office’s Public Integrity Section. The charges were announced by Joseph Nocella, Jr., U.S. attorney for the Eastern District of New York, and Harry Chavis, Jr., special agent in charge of the Internal Revenue Service’s Criminal Investigation branch of New York.
“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,” Nocella said in a press release. “Today’s arrests demonstrate that this office will hold accountable those who exploit victims for their own financial gain. Holding corrupt individuals accountable for the abuse of public trust will always be a priority of our office.”