"A yearslong nightmare is finally over for the 20 families scammed into buying fraudulent condos in Bay Ridge. On Friday, Attorney General Tish James's office announced that $4.2 million, plus a decade of interest, will be returned to Chinese immigrant families defrauded by developer Steven Wu. "This order returns money to the families Wu cheated and ensures he can never again exploit New Yorkers through fraudulent real estate schemes," James said in a statement."
"Multiple families gave Wu what amounted to their life savings in down payments and mortgages for what turned out to be illegal units. The families moved into the five-story building, furnished their apartments, and generally went on with their lives - but Wu had never actually obtained city authorization to sell the apartments as condos, rendering all the deals void."
"James's office sued Wu in 2022 to try to get the money back. It's a rare success story when it comes to these kinds of scams. In 2024, it was announced that the families were able to stay in their apartments after an advocacy organization bought the building in order to sell it back to the families for $50,000 per unit under a rent-to-own plan."
Twenty Chinese immigrant families who bought fraudulent condos at 345 Ovington Avenue in Bay Ridge will receive $4.2 million plus a decade of interest. Xi Hui "Steven" Wu advertised the units and collected down payments and mortgages that amounted to families' life savings despite lacking city authorization to sell the apartments as condos. Wu pocketed more than $5 million and disappeared when the building's lender began foreclosure proceedings. Attorney General Tish James's office sued Wu in 2022, secured an order to return funds and bar him from future schemes, and an advocacy organization converted the building into a rent-to-own cooperative for the families.
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