Ex-Judge and Developer Busted for Ripping Off Investors to the Tune of $5 Million

NEW YORK — A former judge is in deep trouble after being charged with swindling real estate investors out of a staggering $5 million. Edward Harold King, who resigned last year amid a misconduct investigation, is now facing serious allegations of wire fraud alongside Yechiel “Sam” Sprei, a developer with political ties.

The FBI swooped in on Wednesday, arresting the duo for allegedly tricking investors into handing over $6.5 million for a fake property deal. Instead of returning the cash, they reportedly funneled millions into their own pockets. Assistant U.S. Attorney Andrew Wang revealed in court that this scheme is just one of many under scrutiny by federal investigators.

King, 72, and Sprei, 37, were released on bail but are set to return to Brooklyn federal court soon to finalize their bond arrangements. As they left the courthouse, King dodged reporters by cutting through a nearby park, while Sprei’s lawyer remained tight-lipped.

During Sprei’s arrest, he allegedly lied to FBI agents about having only one phone on him. Agents found a second device during a search, raising eyebrows about what else he might be hiding.

If convicted, both men could face up to 20 years behind bars. U.S. Attorney Joseph Nocella Jr. didn’t hold back, stating that the defendants exploited King’s judicial position to lend a false sense of legitimacy to their fraudulent schemes.

King’s resignation came on December 31, 2025, just three years after he took the bench. The state Commission on Judicial Conduct had been investigating him for complaints that mirrored the criminal charges now against him. Allegations included his involvement in defrauding investors and continuing to practice law despite being barred from doing so as a full-time judge.

Prosecutors allege that King and Sprei lured investors with promises of safe returns on their money, claiming it would be held in attorney escrow accounts. In November 2024, they pitched a bogus opportunity to buy commercial real estate in Freehold, New Jersey, demanding a hefty $6.5 million deposit into King’s escrow account as proof of liquidity.

Once the investors wired the funds, they were assured it would remain untouched. But within days, millions were transferred to Sprei’s personal bank account. When the investors sought their money back, King offered excuses instead of cash, eventually returning only $1.5 million while keeping the rest.

King’s judicial career began in 2023 when he won a seat on the New York City Civil Court and was later appointed to the state’s main trial court in June 2024. Before donning the robe, he had a history in private practice and was known for managing assets in real estate disputes.

As the state commission accepted his resignation, its administrator Robert Tembeckjian described the allegations against King as “so egregious” that they warranted his permanent exit from the bench.