A former Brooklyn Supreme Court Justice was arrested Wednesday on federal wire fraud charges after allegedly exploiting his judicial position to steal millions from real estate investors in an elaborate escrow scheme.
Judge Weaponized His Position
Edward Harold King, who served as a Kings County Supreme Court Justice, faces wire fraud conspiracy charges alongside co-defendant Sam Sprei. Federal prosecutors allege the pair defrauded investors by leveraging King’s judicial status to create false legitimacy for fraudulent investment opportunities. The Justice Department unsealed the complaint Wednesday morning at the federal courthouse in Brooklyn, with both defendants scheduled for initial appearances before United States Magistrate Judge Clay H. Kaminsky.
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The Six Million Dollar Scheme
In November 2024, Sprei approached two investors with an opportunity to purchase commercial real estate in Freehold, New Jersey. He told the investors they needed to demonstrate proof of liquidity by depositing funds in escrow, presenting King as an independent escrow agent and sitting New York judge. Sprei promised the investors could withdraw their full deposit within two business days if they decided against the investment. Based on these assurances, the investors wired $6.5 million to a bank account in King’s name under signed escrow agreements.
Within days of receiving the funds, millions of dollars were withdrawn or transferred to accounts in Sprei’s name. When the investors requested their money back, King provided false excuses for why he could not return the $6.5 million. Months later, King and Sprei returned only $1.5 million, leaving $5 million unaccounted for. No additional funds have been returned to the defrauded investors.
Federal Response
United States Attorney Joseph Nocella emphasized the severity of exploiting judicial authority for personal gain. Federal prosecutors stated the defendants cynically leveraged King’s position as a sitting judge to lend false legitimacy to supposed investment opportunities. IRS Criminal Investigation New York Special Agent in Charge Harry declared that fraud hiding behind the veneer of judicial authority strikes at the heart of public trust. The agency pledged to relentlessly follow the money and ensure those who manipulate investors face accountability. Holding corrupt individuals accountable for abusing public trust remains a top priority for the office prosecuting the case.