Sam Sprei and Edward Harold King Allegedly Perpetrated Schemes to Defraud Real Estate Investors of Millions of Dollars
A complaint was unsealed charging Sam Sprei, also known as “Yechiel Sprei,” “Shimon Sprei,” and “Eli Shapiro,” and Edward Harold King, a former Kings County Supreme Court Justice, with wire fraud conspiracy. Both defendants were arrested this morning and are scheduled to make their initial appearance this afternoon before United States Magistrate Judge Clay H. Kaminsky.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI New York), announced the arrests and charges.
“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,” stated United States Attorney Nocella. “Today’s arrests demonstrate that this Office will hold accountable those who exploit victims for their own financial gain. Holding corrupt individuals accountable for the abuse of public trust will always be a priority of our Office.”
“Fraud that hides behind a veneer of legitimacy—especially the authority of a judge—strikes at the heart of public trust,” stated IRS-CI New York Special Agent in Charge Chavis. “IRS‑CI will relentlessly follow the money, expose deception, and ensure that those who manipulate and mislead investors are brought to justice. Today’s arrests send a clear message: schemes dressed up as opportunity will not shield wrongdoers from accountability.”
As set forth in court filings, Sprei and King perpetrated numerous schemes to defraud, including multiple schemes to defraud real estate investors in which they solicited the victims’ funds in fictitious investment opportunities, represented to the victims that their invested funds would be returnable on demand if the victims decided to end their involvement in the investments, and then later refused to return the money based on false excuses and converted a significant portion of the victims’ funds for their own use.
For example, in November 2024, Spreipresented two investors (the Investors) with an opportunity to purchase commercial real estate located in Freehold, New Jersey (the Property). Sprei told the Investors that to take advantage of this opportunity, they would first have to show “proof of liquidity” by depositing funds in escrow. In addition, Sprei told the Investors that King was an independent escrow agent and a New York judge. Sprei also made numerous misrepresentations designed to deceive the Investors, including that if the Investors decided not to pursue the investment, they could so advise the escrow agent and would receive the full amount deposited within two business days. Based on these representations from Sprei, the Investors wired a total of $6.5 million to a bank account in King’s name pursuant to written escrow agreements signed by the Investors and King. In the days immediately following the wire transfers from the Investors to the bank account in King’s name, millions of dollars of the Investors’ funds were withdrawn or transferred to a bank account in Sprei’s name. When the Investors subsequently wrote to King to request the return of their deposited funds, King provided false excuses as to why he could not return the $6.5 million. Months later, King and Sprei returned to the Investors $1.5 million, representing only a portion of the Investors’ investment. To date, Sprei and King have not returned any further funds to the Investors.
The charge in the complaint is an allegation, and the defendants are presumed innocent unless and until proven guilty. If convicted of wire fraud conspiracy, the defendants face up to 20 years’ imprisonment.
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