Accused of Diverting Millions from Investors
Brooklyn, NY – A former Brooklyn judge and a real estate developer stand accused by federal prosecutors of orchestrating a scheme that defrauded investors out of millions of dollars. Edward Harold King, who previously served as a Supreme Court justice, and developer Sam Sprei, allegedly lured individuals with promises of secure, liquid real estate investments.
Prosecutors allege King and Sprei misrepresented investment opportunities, falsely assuring investors their money would be held in protected escrow accounts and be readily accessible upon request. When investors sought to withdraw their funds, the complaint details King offering evasions and alternative arrangements, rather than returning the principal.
Details of the Allegations
The accusations paint a picture of deceptive practices. Sprei, according to court filings, misled investors by highlighting King's judicial status. Crucially, prosecutors claim neither King nor Sprei disclosed significant transactions or sought investor consent for them.
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"Sprei transferred millions of dollars into his own bank account," the U.S. attorney's office stated in court documents.
The complaint further asserts that a substantial portion of these funds were never returned to the investors. During Sprei's arrest, he allegedly misled federal agents about the electronic devices in his possession. A search warrant later uncovered a second phone in addition to his initial cellphone.
Preceding Investigations and Resignation
These current federal charges echo earlier complaints. Similar claims were lodged against King in civil lawsuits and with the state Commission on Judicial Conduct. The investigation by the commission ultimately preceded King's resignation from his judicial post.
