Ex-judge accused of swindling real estate investors out of millions of dollars
NEW YORK -- A former New York City judge who resigned last year while under investigation for professional misconduct was charged Wednesday with abusing his position to swindle real estate investors out of at least $5 million and then using some of the loot to pay his own bills.
Edward Harold King, who left the bench at the end of last year, and Yechiel “Sam” Sprei, a politically connected real estate developer, were arrested by IRS Criminal Investigation agents on wire fraud conspiracy charges after federal prosecutors say they duped a pair of investors into forking over $6.5 million for a bogus property bid and then failed to return all but a fraction of the money.
The allegations are similar to claims made against King in civil lawsuits and in complaints to the state Commission on Judicial Conduct, whose investigation precipitated his resignation.
Assistant U.S. Attorney Andrew Wang told a judge at the men’s initial court appearance on Wednesday that the transaction described in the criminal case was “one of several schemes that the government has been investigating." Discussing Sprei's finances, the prosecutor said “it’s safe to say many, many millions of dollars” have moved through his bank accounts in the last few years.
King, 72, and Sprei, 37, were released on bail and are scheduled to return to Brooklyn federal court on Monday to finalize their bond arrangements. King and his lawyer, Michael Vitaliano, declined to comment as they left the courthouse. The former judge cut through trees in a nearby park to avoid reporters and photographers. Sprei's lawyer, Ezra Lent, declined to comment.
In court, Wang said that during Sprei’s arrest, the developer lied to federal agents that he had no electronic devices on him other than his cellphone. Agents executing a search warrant seized the phone and then found a second phone while patting Sprei down, Wang said.
If convicted, King and Sprei could be sentenced to up to 20 years in prison.
“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 Joseph Nocella Jr. said in a statement.
King resigned on Dec. 31, 2025, just three years after becoming a judge, after the Commission on Judicial Conduct informed him that it was investigating complaints mirrored in his criminal case.
Among the complaints, the commission said, were that King was involved in a scheme to defraud real estate investors and that he continued to act as a lawyer — including by accepting funds into his own attorney escrow accounts — despite rules barring full-time judges from practicing law, acting as fiduciaries or engaging in business activities. King denied the allegations.
According to federal prosecutors, King and Sprei pitched investors on fictitious investment opportunities with false promises that their money would be kept safe in attorney escrow accounts and returned on demand if the investors decided to end their involvement.
In November 2024, prosecutors said, Sprei and King offered two investors an opportunity to buy commercial real estate in Freehold, New Jersey, through a bankruptcy auction. In order to proceed, Sprei told them, all bidders first needed to show “proof of liquidity” and that they could do so by depositing $6.5 million in King’s escrow account, prosecutors said. Sprei told the investors that King was both an independent escrow agent and a judge, according to prosecutors.
The investors wired the money to King's account, where they were told it would be left untouched and not spent or transferred without their permission, prosecutors said. Within days, prosecutors said, King and Sprei transferred several million dollars to a bank account in Sprei’s name.
Later, when the investors exercised their right to have the money back, King offered up excuses and alternatives, at one point saying he would have his lawyer deposit the funds with an unspecified court, prosecutors said. King and Sprei eventually returned $1.5 million to the investors, but have yet to cough up the rest, prosecutors said.
King became a judge in 2023. He won a seat on the New York City Civil Court in Brooklyn and was appointed to the state’s main trial court in June 2024.
Prior to that he was in private practice and, according to news articles about his campaign, was appointed by courts to manage assets in real estate disputes. He also served as an administrative law judge for the city's Parking Violations Bureau and as legal counsel to the state assembly.
When the state commission accepted King's resignation, its administrator Robert Tembeckjian called the allegations "so egregious as to warrant his permanent departure from the bench.”
