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Sunday, May 17, 2026

NYC developer allegedly bragged about court scam a day before FBI arrest

 An accused sleazy loose-lipped developer boasted that he controlled a Brooklyn courthouse — just a day before the feds carted him off to the jailhouse, according to shocking court revelations.

Alleged fraudster Sam Sprei thought he had his case so in the pocket even when a judge with no ties to him was assigned it, after he succeeded in getting two other jurists booted from it.

“LOL,’’ Sprei texted his lawyer over the assignment of third Judge Francois Rivera, evidence showed last week.

Sam Sprei leaves Brooklyn federal court court after his Wednesday arraignment.Gregory P. Mango for NY Post
Edward Harold King, a former Brooklyn State Supreme Court judge, was arrested along with Sprei on Wednesday.Gregory P. Mango for NY Post

Rivera shot back at the defendant in court Tuesday, “I thought it meant ‘lots of luck’ — because you’re gonna need it.”

The FBI ended up busting Sprei and disgraced former Brooklyn Judge Edward H. King a day later.

In shocking voice memos from Sprei revealed in court Tuesday, he described his alleged illicit plans to fix his legal woes involving a $2 million lawsuit, bragged about his courtroom influence and boasted about the stunning plot to boot two unfavorable judges.

“He will have to recuse himself later on, and we will accomplish what we wanted,” Sprei said in one voice memo about the scheme, which involved getting judges to recuse themselves from the bench by hiring lawyers who had prior relationships with them.

The plan worked, twice, with Sprei texting “ha ha” in a message after the first.

Sprei also claimed his court connections included a relationship with Charles Siegel, the principal law clerk of Brooklyn Supreme Court Judge Steven Mostofsky.

The pair’s alleged illicit lucrative schemes reputedly ran long and deep.REUTERS

When trying to delay a court order involving money he had to pony up as part of the process, Sprei said in a voice memo to a crony, “That part, leave up to me.

“I know Siegel very well,’’ he claimed.

Siegel later told The Post by email, “I HAVE NEVER SPOKEN TO THE MAN IN MY LIFE!”

Sprei and King are involved in a slew of civil lawsuits, some with former top Brooklyn Democratic Party leader Frank Seddio, alleging tens of millions of dollars in fraud.Gregory P. Mango

Sprei and King are involved in a slew of civil lawsuits, along with pal and former top Brooklyn Democratic Party leader Frank Seddio, alleging tens of millions of dollars in escrow and investment fraud, in addition to their announced wire fraud conspiracy charges Wednesday.

The developer told The Post in an email the night before his arrest that he has “a legitimate claim to usage [sic] of the two million dollars” and claimed the messages revealed in court were “taking [sic] out of context with apparently doubles [sic] meaning which are in fact inaccurate.”

Other Sprei pals have faced some rotten luck lately, too.

Lawyer Adam Kalish was recently barred from practicing law for three years for “misappropriating” more than $400,000 when acting as an escrow agent for Sprei, with Seddio also vouching for his character, according to an appeal court ruling.

Another lawyer, Jonathan Pasternak, was suspended from Manhattan Federal Court for three years after admitting he took $260,000 from Sprei during a bankruptcy case.

https://nypost.com/2026/05/17/us-news/nyc-developer-allegedly-bragged-about-court-scam-the-day-before-fbi-bust-ha-ha/

Saturday, May 16, 2026

Cal. $33M tiny home project restarts in LA

 California is finally making progress on a stalled program to build tiny homes to address the state’s homelessness crisis.

Los Angeles Mayor Karen Bass and City Council member Hugo Soto-Martínez attended a groundbreaking of a development in East Hollywood earlier this week. It will house 50 people, with ten beds for transitional youth.

“At a time when funding is being cut at every level of government, the determination and creativity it took from my team and our trusted service providers to break ground on these 51 beds is truly extraordinary,” said Soto-Martínez.

Los Angeles intervened at a homeless encampment just around the corner from the project, on Sierra Vista Avenue, and brought 20 people indoors.

Gov. Gavin Newsom put aside $33 million in 2023 for a project to build about 1,200 tiny homes statewide. That included plans for 500 units in Los Angeles, 350 in Sacramento, 200 in San Jose, and 150 in San Diego.

Representatives from the city of Torrance, California, hold a ribbon-cutting and community open house for its 40-unit tiny home village meant to provide unhoused people with access to transitional housing, on June 29, 2022.MediaNews Group via Getty Images
LA Mayor Karen Bass joined City Council member Hugo Soto-Martínez and nonprofit partners to break ground on a new tiny home village in East Hollywood on May 14, 2026.Los Angeles Mayor's Office

The homes would be placed by those jurisdictions, which would own the units and provide recruiting and other services.

It came at the same time that the state said it would release $1 billion in homeless prevention funding. Newsom aimed for a 15% reduction in homelessness statewide by 2025.

The Realtor.com® state-by-state housing affordability report card gives California an F. Newsom championed building more housing in the state, especially more dense housing in reluctant cities.

How the promise to build tiny homes stalled

Tiny homes, already popular with homeowners, looked like an attractive way to address homelessness. California is already one of the pioneers of the market-rate small home, and the market is expanding as more states allow them, and more financing comes to the table.

The state is already trying out new housing types including modular-home building and “straw homes.”

The interior of a tiny home unit is pictured with a bed, hygiene products and climate controls.MediaNews Group via Getty Images

But the program stalled and California changed its strategy, instead giving communities cash grants to order the tiny homes themselves. And it picked up criticism along the way, for slow development pipelines, design limitations, and inflating costs per unit.

Los Angeles and some other cities have made progress in addressing homelessness. Street homelessness has dropped by 18% over the last two years in LA, Bass said.

Still, state and federal support for homeless programs declined. Net funding to LA dropped from $6.9 billion in 2022 and 2023 amid the COVID-19 surge, to $1.5 billion in 2025-2026.

The city has been pushing for an amendment to the state’s affordable housing bond program in a bid for more interim housing.

California Department of Housing and Community Development, Hope the Mission, Built On Site Systems, Lehrer Architects, and the Zegar Family Foundation are the development team for the East Hollywood project.

https://nypost.com/2026/05/16/real-estate/californias-extraordinary-33-million-tiny-home-project-restarts-in-la/

Waste Of The Day: Seattle's Homelessness Fiasco

 by Jeremy Portnoy via RealClear Politics,

Topline: The homelessness agency in King County, Wash., has a $45 million deficit, but auditors can’t fully figure out why, according to a state audit publicly released this April. Its accounting records are so poor that it’s impossible to track where portions of its money are being spent.

Key facts: The King County Regional Homelessness Authority helps run shelters and outreach to the homeless population in 39 cities. It’s funded jointly by the county and the City of Seattle.

Financial records claim that the city and county owe the Homelessness Authority $49.8 million for services already performed, but the Authority could not explain what $8 million of that was for.

The Authority also overspent its administrative budget by $4.3 million, auditors found. Officials bought Salesforce, a business analytics platform, in 2024 without approval from the county, the report claims. A budget amendment later allowed them to spend $563,000, but the platform ended up costing more than $2 million.

Money was also wasted by hiring contractors from expensive consulting firms like Robert Half instead of using salaried workers, the audit found. The Authority contracted with one Robert Half staffer to serve as its chief financial officer for 11 months at $449,000. When the contract expired, the same person became a full-time employee for just $285,000 per year.

The reliance on contractors also increased staff turnover, which employees told auditors made accounting more difficult since financial systems were constantly being altered by new leadership. 

The Authority was formed in December 2019 and had received $534 million in total funding as of July 2025. Some local leaders, including Seattle Mayor Katie Wilson, said they are open to the idea of dissolving it.

King County Council member Rod Dembowski told the Renton Reporter, “It’s now time for elected officials to bring this failed experiment to an end. The agency has failed in its core obligation – to make significant progress in getting people sheltered.”

Search all federal, state and local salaries and vendor spending with the world’s largest government spending database at OpenTheBooks.com

Background: Seattle had almost 17,000 homeless people as of 2024, the fourth-largest population in the U.S. despite being the 18th-largest city. Homelessness increased by 19% from 2023 to 2024.

King County receives $65 million in annual federal funds from the Department of Housing and Urban Development’s Continuum of Care program. Most of it goes to the Homelessness Authority for housing, but the Trump administration is proposing changes that would require most of the money to be spent on “self-sufficiency” programs like job training and addiction treatment.

Summary: Seattle is becoming the largest major city to learn that spending massive amounts of money on homelessness prevention is pointless without careful oversight.

The #WasteOfTheDay is brought to you by the forensic auditors at OpenTheBooks.com

https://www.zerohedge.com/political/waste-day-seattles-homelessness-fiasco