Overview
- King and Sprei, arrested Wednesday on wire fraud conspiracy charges, made initial appearances in Brooklyn federal court and were released on bail.
- Prosecutors say Sprei had investors wire $6.5 million into an escrow account in King’s name for a Freehold, New Jersey auction, with only about $1.5 million later returned even though New York judges are barred from keeping attorney escrow accounts.
- Bank records cited in the complaint show King moved millions out of the escrow account without consent, including an $850,000 transfer to an account in Sprei’s name.
- Federal agents with the FBI and IRS are examining the Freehold deal as one of several suspected schemes that used a judge’s status to make investments look safe.
- In related civil court hearings this week, lawyers played voice memos that appear to show Sprei discussing judge recusals and directing lawyers to file misleading papers, with local political figure Frank Seddio mentioned in those allegations.