(WNY News Now) – Court orders restitution and permanent business ban for Brooklyn property owner who sold non-existent condominium units
NEW YORK — New York Attorney General Letitia James has won more than $4.2 million in restitution for at least 20 Chinese immigrant families who were defrauded by a Brooklyn property owner in a years-long real estate scheme involving non-existent condominium units.
In a summary judgment ruling, New York County Supreme Court found Xi Hui “Steven” Wu and his companies liable for fraud after determining that Wu illegally sold condominium units that were never legally created at 345 Ovington Avenue in Bay Ridge. The court ordered Wu to pay $4,227,888 in restitution, plus nine percent interest dating back to 2016, returning funds to families who believed they were purchasing homes.
According to the Attorney General’s Office, Wu submitted an offering plan in 2013 for a proposed 25-unit condominium building but never completed required filings with the New York City Department of Finance. As a result, the property was never legally subdivided into individual condominium units, and no lawful deeds were created.
Despite lacking legal authority to sell condominiums, Wu proceeded to market and “sell” units to immigrant families, many of whom moved into the building under the assumption they owned their homes. Investigators found Wu relied on informal, single-page agreements written in Chinese rather than legally required purchase contracts, and no buyers received any legitimate ownership interest.
The investigation determined Wu collected down payments, full purchase payments in some cases, and ongoing monthly payments that residents believed were mortgage payments and condominium common charges. Because no condominium existed, those payments went directly to Wu. Over several years, more than $5 million was taken from the families, often representing their life savings.
The Office of the Attorney General also found that Wu submitted fabricated documents and false information to regulators to conceal the scheme, including fake purchase agreements and escrow records. None of the purchaser deposits were placed into escrow accounts, as required by state law.
In November 2025, the court ruled that Wu violated the Martin Act and New York Executive Law, permanently barring him from conducting business in New York. A supplemental order issued this week finalized the restitution amount and interest owed.
Attorney General James stated the ruling ensures accountability and returns money to families who were misled into believing they were achieving homeownership. Community advocates noted that the legal action also helped prevent evictions and preserve housing stability for affected residents.
The case was handled by the Attorney General’s Real Estate Finance Bureau within the Division for Social Justice.
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