"Prosecutors charged infamous Brooklyn real estate operator Sam Sprei and former Kings County Supreme Court Justice Edward Harold King with criminal wire fraud conspiracy for allegedly diverting investor escrow funds. Sprei and King were arrested this morning and are expected to make their initial appearance this afternoon in federal court in Brooklyn. The Department of Justice alleges Sprei, a well-known broker and investor in New York City real estate who also goes by Yechiel Sprei, Shimon Sprei and Eli Shapiro, teamed up with King to perpetuate a number of fraud schemes."
"This included soliciting funds for investment opportunities and telling investors their funds could be returnable. Sprei and King then refused to return the funds and took off with the money, according to the DOJ's release announcing the charges. Fraud that hides behind a veneer of legitimacyespecially the authority of a judgestrikes at the heart of public trust, said IRS-CI New York Special Agent in Charge Harry Chavis in a statement."
"According to prosecutors in November 2024, Sprei told two investors that in order to buy property they needed to show proof of liquidity by depositing funds in escrow. Sprei told investors that the escrow agent was King, a New York judge. Sprei allegedly told investors their funds would stay in escrow. If the investors decided against going forward with their investment, they could get back their full deposit within two business days."
"Investors allegedly wired about $6.5 million to King's escrow account. But money started moving out of the accounts, unknown to the investors, including a $850,000 wire to a bank account in Sprei's name, according to prosecutors."
Prosecutors charged Brooklyn real estate operator Sam Sprei and former Kings County Supreme Court Justice Edward Harold King with criminal wire fraud conspiracy for allegedly diverting investor escrow funds. Sprei and King were arrested and expected to appear in federal court in Brooklyn. The Department of Justice alleges they solicited investor money for real estate investment opportunities and told investors their funds could be returned. Prosecutors say Sprei and King refused to return the funds and took the money. The scheme allegedly relied on the authority of a judge by identifying King as the escrow agent. Prosecutors allege investors wired about $6.5 million to King’s escrow account, after which funds began moving out without investors’ knowledge, including an $850,000 wire to an account in Sprei’s name.
#wire-fraud-conspiracy #real-estate-investment-fraud #investor-escrow-funds #federal-court #brooklyn
Read at therealdeal.com
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