"Between November 2024 and May 2025, Sprei and King “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 cease involvement in the investments, and then later refused to return the money based on false excuses and converted at least a substantial portion of the victims' funds to their personal uses,” alleges United States Department of Justice special agent Anthony Cunder in the criminal complaint."
"Prosecutors say that King and Sprei stole millions from investors by multiple schemes, including holding out the former judge as a trusted escrow provider for sham transactions. “Fraud that hides behind a veneer of legitimacy-especially the authority of a judge-strikes at the heart of public trust,” stated Internal Revenue Service Criminal Investigation (IRS‑CI), New York Special Agent in Charge Harry T. Chavis, Jr."
"“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 Joseph Nocella, Jr. “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.”"
A former Kings County, New York Supreme Court Justice and a Brooklyn real estate investor were arrested on federal wire fraud conspiracy charges. The alleged conduct involved multiple schemes to defraud real estate investors out of millions of dollars. Prosecutors claim the pair used the judge’s authority to create false legitimacy for investment opportunities. The complaint alleges they solicited investor funds through fictitious opportunities, represented that funds would be returnable on demand, and later refused to return money using false excuses. Prosecutors further allege they converted at least a substantial portion of the funds to personal use. Conviction could result in up to 20 years in prison.
#wire-fraud-conspiracy #real-estate-investment-fraud #federal-criminal-charges #judicial-corruption #investor-scams
Read at Real Estate News & Insights | realtor.com
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