A former New York City judge, Edward Harold King, and real estate developer Yechiel “Sam” Sprei were arrested in federal court on wire fraud conspiracy charges for allegedly defrauding investors of about $6.5 million through a bogus real estate bid and using some funds for personal expenses.

The scheme promised funds would be held in attorney escrow accounts and returned on demand, with King acting as an independent escrow agent and, leveraging his judicial status, allegedly facilitating transfers to Sprei’s accounts.

King resigned from the bench at the end of 2025 amid a state investigation into professional misconduct, including alleged involvement in the real estate investment scheme and continuing to practice law.

Law outlets, including Law.com, are covering the case, and the U.S. attorney’s office has issued statements about the charges.

Federal prosecutors and the Internal Revenue Service are continuing investigations into related schemes using similar tactics.

The case highlights broader concerns about fraudulent investment opportunities and the impact on victims and associated parties.

The story is evolving, with updates expected as proceedings continue.

The U.S. Attorney and IRS emphasize accountability for those who exploit public trust and defraud investors.

Civil claims related to a New Jersey property case remain pending, with investors pursuing remedies in parallel to the criminal case.

Sprei is also known by multiple aliases and faces involvement in the same scheme.

Prosecutors say the described transaction was one of several schemes under investigation, with millions more moving through Sprei’s accounts in recent years.

Assistant U.S. Attorney Andrew Wang noted this transaction was part of multiple schemes under federal scrutiny, with ongoing movement of funds through Sprei’s accounts.