Former Judge Charged in $6.5 Million Real Estate Fraud Scheme

Newsmax ^ | 05/13/2026 | Solange Reyner

[thegagline]

A former New York Supreme Court justice and a Brooklyn real estate developer have been charged in an alleged $6.5 million investment fraud scheme tied to a purported New Jersey commercial real estate deal, according to a federal criminal complaint unsealed in the Eastern District of New York.

Federal prosecutors said former Kings County Supreme Court Justice Edward Harold King and developer Sam Sprei, also known as Yechiel Sprei, Shimon Sprei and Eli Shapiro, conspired to defraud investors by falsely claiming their money would be securely held in escrow for a bankruptcy-related property auction in Freehold, New Jersey.

According to the complaint, Sprei approached two investors in late 2024 with what he described as an opportunity to bid on a commercial property through a bankruptcy court auction. Prosecutors said Sprei told the investors they needed to deposit funds into escrow to demonstrate "proof of liquidity" in order to participate.

The complaint alleges the defendants assured investors the money would remain protected in escrow and could be returned within two business days if the investors decided not to proceed with the deal.

On Feb. 26, 2025, the investors wired approximately $6.5 million into an escrow account controlled by King, including roughly $5.5 million from one investor and $1 million from another, prosecutors said.

Federal investigators allege that within days of the transfers, millions of dollars were withdrawn or transferred from the account without the investors' knowledge or authorization.***

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TOPICS:
KEYWORDS: crime; fraud; judge; judgewatch; newyork; realestate; realty

[thegagline]

Who said that blacks and Jews don’t get along?

[Vaduz]

Indeed cash knows no color.

[frank ballenger]

How many innocent conservative people met with injustice due to this corrupt NY State Supreme Court justice?

[Attention Surplus Disorder]

‘An escrow account controlled by King” is an oxymoron as far as I know. Escrow accounts are controlled by title companies, not the participants.

[unixfox]

Tax the RICH!

[Flash Bazbeaux]

Reminding everyone that in New York, the Supreme Court is a trial court, not a High Court.

[Vaduz]

Not US rich

Crooks master loopholes.

Judges wink $$$$$$$$$$$$$$$$$$

[Vaduz]

We will never know it’s why the left do so much rigging.

[frank ballenger]

Thanks for that info.

[ComputerGuy]

Israelis?

[Liz]

A former Kings County Supreme Court Justice...... Edward Harold King....... and developer Sam Sprei (AKA Yechiel Sprei, Shimon Sprei and Eli Shapiro).......conspired to defraud investors by falsely claiming their $6.5 million would be securely held "in escrow" for a bankruptcy-related property auction. (NY Post report)

[Steven Scharf]

‘An escrow account controlled by King” is an oxymoron as far as I know. Escrow accounts are controlled by title companies, not the participants.

$6.5 million into an escrow account controlled by King, including roughly $5.5 million from one investor and $1 million from another,

Escrow accounts are established for various purposes. They are essentally holding accounts to accomodate transaction like this.

[Attention Surplus Disorder]

I understand what an escrow account is. I have never encountered one where one of the interested parties to the transaction can withdraw funds, deal or no deal, without approval of all parties. If I am buying a house and deposit funds into an escrow account and there is, for example, an inspection contingency, and the house utterly fails the contingency, I still can’t get my funds out until the seller approves dissolving the escrow.

[Thank You Rush]

“”in New York, the Supreme Court is a trial court, not a High Court””

THAT always has been confusing....