Overview
- Federal prosecutors in Brooklyn charged Edward Harold King and Yescheil “Sam” Sprei on Wednesday, alleging they used an attorney escrow account to siphon investor funds from a New Jersey property deal.
- Sprei told two bidders to place $6.5 million in escrow for a Freehold, N.J., auction even though a court notice set a $250,000 deposit, and he touted King’s status as a sitting judge to reassure them.
- Prosecutors say King, acting as escrow agent, wired money out of the account, including $850,000 to an account in Sprei’s name, and about $5 million remains unaccounted for after $1.5 million was later returned.
- Agents arrested both men, arraignments are pending, and the IRS is working with the U.S. Attorney’s Office in Brooklyn to examine other deals that may have used similar tactics.
- Separate state court hearings feature voice memos and testimony that depict Sprei steering courthouse moves and directing lawyers, including Frank Seddio, while judicial rules bar sitting judges from running escrow accounts and King resigned in February after a state investigation.