Attorney General James Wins More than $4.2 Million for Chinese Immigrant Families Defrauded by Brooklyn Property Owner

NEW YORK – New York Attorney General Letitia James today announced a major victory in her lawsuit against Brooklyn property owner Xi Hui “Steven” Wu, securing more than $4.2 million plus nearly a decade of interest for at least 20 Chinese immigrant families he defrauded out of their life savings. In a summary judgment ruling, New York County Supreme Court found Wu and his companies liable for fraud after determining that he illegally sold non-existent condominium units in Bay Ridge, Brooklyn, and unlawfully collected millions of dollars in down payments and fees from immigrant families who believed they were buying homes. Attorney General James sued Wu, his ex-wife Xiao Rong Yang, and his companies TCJ Construction Inc. and 345 Ovington LLC in 2022 after an Office of the Attorney General (OAG) investigation found that Wu orchestrated a years-long scheme to sell fake condominium units and steal more than $5 million from families in his own community. Today, the court awarded $4,227,888 in restitution, plus nine percent interest dating back to 2016, with the full amount to be returned to the families Wu defrauded.

“Steven Wu preyed on hardworking immigrant families, abused their trust, and stole the savings they had set aside to build a stable future,” said Attorney General James. “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. I am thrilled that these families will finally see justice.”

“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 as a result of this fraudulent scheme,” said Thomas Yu, Executive Director of Asian Americans for Equality (AAFE). “Not only did Attorney General James successfully prosecute this case, but she worked with the residents and AAFE to prevent any evictions and ensure that the dream of homeownership stayed alive for these families. We are proud to have collaborated with the Attorney General and other city and state officials to rescue the building from bankruptcy and to facilitate the redevelopment of 345 Ovington as a middle-income cooperative.”

In January 2013, Wu submitted an offering plan to OAG for a proposed 25-unit condominium building at 345 Ovington Avenue in Bay Ridge, Brooklyn. While the offering plan was filed with OAG, Wu never completed the required steps with the New York City Department of Finance to legally create a condominium. The building was never subdivided into individual units, no separate tax lots were established, and no lawful condominium deeds were ever created.

Despite having no legal authority to sell condominium units, Wu proceeded to “sell” units to at least 20 immigrant families, many of whom moved into the building under the assumption that they owned their homes. Wu targeted families who trusted him as a prominent developer in the neighborhood and relied on informal, single-page agreements written in Chinese, rather than formal purchase contracts as required by law. In reality, there were no condominium units to sell, and the families received no legal ownership interest in exchange for their payments.

In addition to collecting down payments — and in some cases, full payments — from the families, Wu also collected monthly residential mortgage payments from many of the residents who did not pay for their units in full. Nearly all of the residents were also making monthly payments to Wu, which they believed were for condominium common charges. However, because no condominium actually existed, these payments were essentially direct payments to Wu. Over several years, Wu stole more than $5 million from immigrant families, draining their life savings while using the money to cover his own loans and construction expenses.

The OAG also found that Wu repeatedly lied to regulators and fabricated documents in an effort to conceal his fraud. When questioned by OAG, Wu submitted fake purchase agreements and escrow documentation to make it appear that he lawfully collected and held purchaser deposits. In fact, Wu failed to place any of the purchaser deposits in escrow accounts, instead pocketing the families’ real payments, in direct violation of New York law.

In November 2025, New York County Supreme Court Judge Anar Patel found that Wu violated the Martin Act and Executive Law 63(12) and permanently barred him from conducting business in New York. In a supplemental order issued this week, the court ordered Wu to pay $4,227,888 in restitution, plus nearly ten years of statutory interest.

This matter is being handled by Assistant Attorney General Nicholas Minella, Assistant Attorney General Nicole Lubell, and Chief of Enforcement Louis Solomon, with assistance from Legal Assistant 2 Brenda Heredia, of the Real Estate Finance Bureau, under the supervision of Bureau Chief Jacqueline Dischell. The Real Estate Finance Bureau is a part of the Division for Social Justice, which is led by Chief Deputy Attorney General Meghan Faux and overseen by First Deputy Attorney General Jennifer Levy.