A disgraced former Brooklyn Supreme Court justice has been taken into federal custody following allegations that he utilized his judicial standing to facilitate a massive real estate investment scam. Edward Harold King, who resigned from the bench earlier this year, was arrested alongside developer Sam Sprei on charges related to a $6.5 million fraud operation.
Federal prosecutors allege that the pair targeted investors by promising lucrative returns on bankrupt property located in Freehold, New Jersey. The scheme reportedly relied on the creation of a fraudulent escrow account held in King’s name to provide a veneer of legal legitimacy to the transaction.
According to the federal indictment, the defendants convinced investors to deposit $6.5 million into the account under the guise of securing a real estate deal. When the investors attempted to withdraw their funds, they were met with excuses and only received a fraction of their initial capital back.
United States Attorney for the Eastern District of New York, Joseph Nocella, emphasized the severity of the breach of public trust in a formal statement. He noted that the defendants cynically leveraged King’s former position as a sitting judge to deceive victims for personal financial gain.
The investigation, conducted jointly by the FBI and the IRS, suggests that the duo pocketed the vast majority of the invested funds. IRS New York Special Agent in Charge Harry Chavis stated that the agency remains committed to following the money trail to ensure accountability for those who manipulate financial systems.
King’s legal troubles extend beyond this specific case, as he had previously resigned from his judicial post in January amid broader allegations of fraud involving over $11 million. That earlier scandal also implicated former Brooklyn party boss Frank Seddio, who has faced separate civil litigation regarding his alleged use of political influence to bilk investors.
While the prosecution paints a clear picture of criminal intent, defense representatives have yet to fully outline their strategy for the upcoming trial. Some legal observers suggest that the defense may attempt to characterize the failed real estate venture as a legitimate business deal that simply collapsed due to market volatility rather than intentional malice.
The impact of this case on the local legal community is significant, as it further erodes public confidence in the integrity of the judiciary. For the victims involved, the path to recovery remains uncertain as they continue to pursue civil remedies alongside the ongoing criminal proceedings.
Attorney Tab Keith Rosenfeld, who represents the defrauded investors, confirmed that his clients are closely monitoring the criminal case while simultaneously pushing forward with civil litigation. The outcome of these proceedings could set a precedent for how the court handles cases where judicial authority is weaponized for private financial gain.
As the case moves toward trial, federal authorities have signaled that they will continue to prioritize the prosecution of white-collar crimes that exploit the authority of public office. The arrests serve as a stark reminder of the consequences for those who attempt to hide behind a facade of institutional legitimacy.
This report is based on information provided by the United States Attorney’s Office for the Eastern District of New York and official statements from the FBI and IRS. Additional context regarding the civil litigation was provided by legal counsel representing the affected investors.