Brooklyn Judge Resigns Amid Fraud Allegations
A judge from Brooklyn is facing serious accusations of playing the role of an escrow lawyer, contributing to the defrauding of investors and major banks out of more than $11 million. This revelation comes from a lawsuit filed before he resigned as authorities began looking into his actions.
Judge Edward Harold King, 71, is listed as a defendant in several lawsuits where he allegedly helped settle cases by swapping participants with similar claims. One notable figure in these accusations is Frank Seddio, a former county party leader with considerable sway in the judicial nomination process.
The New York State Commission on Judicial Conduct revealed on Friday that King was under scrutiny for corruption and suspected of practicing law while actively serving as a judge. As a result, King chose to resign rather than continue with the investigation.
No criminal investigation has been announced concerning the claims, although the commission has referred cases to law enforcement previously. They did not provide any further remarks regarding the situation.
King, who was expected to return to the bench in 2024, did not reply to requests for comments regarding the matter.
Robert Thembejian, the chairman of the state commission of inquiry, expressed serious concern, stating, “The disturbing allegations of financial impropriety against Judge King were sufficiently egregious to warrant his permanent removal.” He added that judges should abide by and respect the law outside the courtroom too, to maintain public trust in judicial integrity.
Despite being a full-time judge, King allegedly acted as an escrow agent inappropriately, accepting funds he shouldn’t have, failing to return requested amounts, and redistributing money to unauthorized parties, according to the complaint from the SCJC.
These serious allegations align with several ongoing lawsuits in state and federal venues, which involve claims of $11.8 million related to fraudulent activities, accusing King and others of fraud, theft, and extortion.
In one specific lawsuit, a Nassau County investor claims his repeated attempts to retrieve $7 million were rejected. This investor mentions that the original escrow agent transferred the funds to King, who then redirected them to another attorney.
Despite some funds being returned to the investors, there remains $1.8 million that is unaccounted for, and the lawsuit seeks triple damages, totaling $21 million.
Ken Glassman, representing the investors, expressed his disbelief, saying it’s alarming that judges and lawyers behave as if the law doesn’t apply to them. He likened their situation to “Teflon knockoffs,” suggesting nothing seems to stick to them.
In a separate but related case in Nassau County, King, along with real estate investor Sam Spry and Jonathan Rubin from New Jersey, is accused of extortion by withholding $5 million allegedly held in escrow from victims.
The outlined complaints suggest that victims lost tens of millions in funds placed in escrow, which the defendants didn’t return. Additionally, a lawsuit from TD Bank in federal court claims King overpaid $1.9 million last February and failed to replenish this amount, with the total potentially higher if not for a canceled wire transfer.
Reports by The Post have examined a case that involves Seddio, Spry, Graubard, and Rubin in yet another similar $2 million escrow fraud scheme.
All parties have denied any wrongdoing, with representatives for Seddio asserting he is being targeted due to his prominence in both the community and political spheres.
