(Dreamstime)
A former New York Supreme Court justice and a Brooklyn real estate developer have been charged in an alleged $6.5 million investment fraud scheme tied to a purported New Jersey commercial real estate deal, according to a federal criminal complaint unsealed in the Eastern District of New York.
Federal prosecutors said former Kings County Supreme Court Justice Edward Harold King and developer Sam Sprei, also known as Yechiel Sprei, Shimon Sprei, and Eli Shapiro, conspired to defraud investors by falsely claiming their money would be securely held in escrow for a bankruptcy-related property auction in Freehold, New Jersey.
According to the complaint, Sprei approached two investors in late 2024 with what he described as an opportunity to bid on a commercial property through a bankruptcy court auction. Prosecutors said Sprei told the investors they needed to deposit funds into escrow to demonstrate “proof of liquidity” in order to participate…