A complaint was unsealed at the federal courthouse in Brooklyn on May 13, charging Sam Sprei, also known as Yechiel Sprei, Shimon Sprei, and Eli Shapiro, along with Edward Harold King, a former Kings County Supreme Court Justice, with wire fraud conspiracy. Both men were arrested that morning and were scheduled to make their initial appearance before United States Magistrate Judge Clay H. Kaminsky.
The arrests and charges were announced by Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Harry T. Chavis, Jr., Special Agent in Charge of Internal Revenue Service Criminal Investigation in New York.
“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,” said 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,” said 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.”
According to court filings described in the complaint, Sprei and King allegedly engaged in several fraudulent schemes targeting real estate investors by soliciting funds under false pretenses for fictitious investment opportunities. In one example from November 2024 cited in court documents, Sprei told two investors they could purchase commercial real estate in Freehold, New Jersey if they first deposited funds into escrow managed by King—who was presented as an independent agent and judge. The investors wired $6.5 million based on these representations but later received only $1.5 million back after repeated requests; no further funds have been returned.
The charge is an allegation; both defendants are presumed innocent unless proven guilty. If convicted on wire fraud conspiracy charges they face up to 20 years’ imprisonment.
The case is being handled by Assistant United States Attorneys Rebecca Schuman and Andrew Wang from the Public Integrity Section.
