Ex-NYC Judge, Developer Arrested in $6.5M Fraud Case

A former New York City judge and a real estate developer were arrested Wednesday on federal wire fraud conspiracy charges for allegedly defrauding investors out of millions of dollars by misusing the judge's position to hold funds in escrow for a fictitious property deal. Edward Harold King, 72, who resigned from the bench at the end of 2025, and Yechiel Sam Sprei, 37, appeared in Brooklyn federal court after the FBI took them into custody.

Prosecutors allege that in November 2024, Sprei and King solicited two investors for a commercial real estate purchase in Freehold, New Jersey, through a bankruptcy auction. Sprei told the investors they needed to deposit $6.5 million into King's attorney escrow account to prove liquidity. According to the charges, Sprei represented King as both an independent escrow agent and a sitting judge, assuring the investors their funds would remain untouched and be returned within two business days upon request.

The investors wired the money in early 2025, but prosecutors say King and Sprei soon transferred several million dollars to an account in Sprei's name. When the investors demanded their money back in April 2025, King provided excuses,...