New York Attorney General Letitia James has secured more than $4.2 million in restitution, plus nearly a decade of interest, for at least 20 Chinese immigrant families who were defrauded by a Brooklyn property owner through a fraudulent condominium scheme.
In a summary judgment ruling, the New York County Supreme Court found Xi Hui “Steven” Wu and his companies liable for fraud after determining that he illegally sold non-existent condominium units at 345 Ovington Avenue in Bay Ridge, Brooklyn.
The court ordered Wu to pay $4,227,888 in restitution, with nine percent interest dating back to 2016, returning the full amount to the families he deceived.
The ruling stems from a lawsuit filed by the Office of the Attorney General (OAG) in 2022 following an investigation that uncovered a years-long scheme in which Wu falsely claimed to be selling condominium units that were never legally created. Wu was also permanently barred from conducting business and selling securities in New York.
“Steven Wu preyed on hardworking immigrant families, abused their trust, and stole the savings they had set aside to build a stable future,” Attorney General James said. “These families believed they were buying homes, when in reality, they were being sold nothing but lies. This order returns money to the families Wu cheated and ensures he can never again exploit New Yorkers through fraudulent real estate schemes.”
According to court records, Wu submitted an offering plan to the OAG in January 2013 for a proposed 25-unit condominium building at the Bay Ridge address.
However, he never completed the required steps with the New York City Department of Finance to legally establish a condominium.
The property was never subdivided into individual units, no tax lots were created, and no lawful condominium deeds existed.
Despite lacking legal authority, Wu proceeded to “sell” units to immigrant families, many of whom moved into the building believing they were homeowners. Prosecutors said Wu relied on informal, single-page agreements written in Chinese rather than legally required purchase contracts, exploiting trust within his own community.
In addition to collecting large down payments—and in some cases full purchase prices—Wu charged residents monthly payments he claimed were mortgage payments and common charges. Because no condominium existed, the court found these payments went directly to Wu. Over time, investigators determined that Wu stole more than $5 million, using the funds to cover personal loans and construction expenses.
The OAG further found that Wu fabricated documents and repeatedly lied to regulators in an attempt to conceal the scheme. He submitted false purchase agreements and escrow records to make it appear that buyers’ deposits were properly held, when in reality no escrow accounts existed, a direct violation of New York law.
Community advocates welcomed the ruling. Thomas Yu, executive director of Asian Americans for Equality (AAFE), said the outcome brought long-awaited relief to affected families and helped preserve their housing stability.
“We are grateful to Attorney General James and happy for the 20 families at 345 Ovington Street who have finally seen justice prevail after nearly losing everything,” Yu said. He added that collaboration with state and city officials helped prevent evictions and enabled the redevelopment of the property into a middle-income cooperative.
In November 2025, Judge Anar Patel ruled that Wu violated the Martin Act and New York Executive Law 63(12), permanently barring him from doing business in the state.
This week’s supplemental order finalized the restitution amount and interest owed to the families. The case was handled by attorneys in the OAG’s Real Estate Finance Bureau under the Division for Social Justice.
