A Brooklyn choose illegally moonlighting as an escrow lawyer helped defraud greater than $11 million from traders and a significant financial institution, lawsuits declare — then resigned when a watchdog started investigating.
Decide Edward Harold King, 71, is known as as a defendant in a slew of lawsuits alleging he helped swipe the dough alongside a rotating forged of characters concerned in a case with almost similar claims — together with former county get together boss Frank Seddio, who wields big affect over the judicial nominee course of,
King’s resignation was introduced Friday by the New York State Fee on Judicial Conduct, which mentioned the choose had been beneath investigation for the fraud accusations in addition to allegedly training regulation as a sitting choose, which isn’t allowed.
Somewhat than take part within the investigation, King resigned from the bench and agreed to by no means function a choose once more — killing the probe.
No legal investigation has been introduced in connection to the allegations, however the SCJC has made referrals on its case to regulation enforcement previously. The panel declined to remark additional to The Put up.
King was appointed to the bench in 2024. He didn’t reply to a Put up request for remark.
“On or off the bench, a choose should respect and adjust to the regulation and promote public confidence within the integrity of the judiciary,” mentioned Robert Tembeckjian, head of the SCJC.
“The alarming allegations of monetary impropriety towards Decide King had been so egregious as to warrant his everlasting departure from the bench.”
King improperly served as an escrow agent whereas a full-time choose and “improperly” obtained escrow funds, refused to return the funds as required and transferred the funds to “unauthorized third events,” the SCJC wrote of the allegations.
The claims mirror these in a number of lawsuits nonetheless dealing with King in state and federal court docket alleging he performed a task in mishandling $11.8 million, accusing him and others of fraud, theft and racketeering.
In a single lawsuit, a Nassau county investor claims his efforts to have $7 million of his funds returned had been denied and that the unique escrow agent had transferred the funds to King, who then despatched the cash to a different lawyer, Mark David Graubard.
Graubard was almost arrested earlier this month for failing to provide financial institution information in one other lawsuit alleging escrow fraud.
Regardless of some cash being returned to the Nassau investor, $1.8 million stays lacking, the lawsuit claims, which seeks triple damages of $21 million.
“I couldn’t perceive how all of this has been taking place — judges and attorneys are appearing as if the regulation doesn’t apply,” mentioned the investor’s lawyer, Ken Glassman.
“It’s like these guys are like — as they used to say about John Gotti — the Teflon rip-off. Nothing sticks to them”
One other Nassau County lawsuit accuses King, plus Brooklyn actuality investor Sam Sprei and Lakewood, NJ, resident Jonathan Rubin, of refusing to return $5 million supposedly held in escrow, and alleges they had been working a racketeering enterprise.
“Because of the scheme, [victims] have misplaced tens of hundreds of thousands of {dollars} in funds which they positioned into escrow and which the Defendants refuse to return to them,” the go well with mentioned.
One other lawsuit filed in federal court docket by TD Financial institution claims that King overdrew and did not replenish his account by $1.9 million final February — an quantity that will have been even greater if an $850,000 wire switch to Sprei a day earlier hadn’t been cancelled.
The Put up has reported extensively on one case accusing Seddio, Sprei, Graubard and Rubin of taking part in or aiding an almost similar $2 million escrow fraud scheme.
All have denied wrongdoing, with a rep for Seddio claiming he’s “a goal due to his high-profile standing in the neighborhood and his political management.”
