Xi Hui Steven Wu Ordered to Pay $4.2M in Restitution for Swindling …

NEW YORK – Xi Hui “Steven” Wu, a Brooklyn property owner, is facing a hefty price for a years-long scheme that preyed on the dreams of at least 20 Chinese immigrant families. New York Attorney General Letitia James announced today that Wu has been ordered to pay more than $4.2 million in restitution, plus nearly a decade of interest, after being found liable for fraud in New York County Supreme Court. Wu illegally sold nonexistent condominium units in Bay Ridge, Brooklyn, pocketing down payments and fees from families who believed they were finally securing a piece of the American dream.

The Attorney General’s office initiated the lawsuit against Wu, his ex-wife Xiao Rong Yang, and his companies TCJ Construction Inc. and 345 Ovington LLC back in 2022. The investigation revealed a calculated deception: Wu never completed the necessary steps to legally create a condominium at 345 Ovington Avenue. The building wasn’t subdivided, no tax lots were established, and no legitimate deeds were ever issued. Yet, he brazenly “sold” units, exploiting the trust placed in him by members of his own community.

“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 stated bluntly. “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.” The court awarded $4,227,888 in restitution, compounded by nine percent interest dating back to 2016 – a substantial financial blow to the perpetrator.

The scheme was particularly insidious in its targeting of vulnerable families. Wu relied on informal, single-page agreements written in Chinese, sidestepping the formal purchase contracts legally required. Many families had already moved into the building, believing they owned their homes, while Wu continued to collect monthly mortgage payments from those who hadn’t fully paid. This wasn’t just a financial swindle; it was a complete disregard for the lives and livelihoods of those he defrauded.

The case wasn’t fought in isolation. Asian Americans for Equality (AAFE) played a crucial role in supporting the affected families. Thomas Yu, Executive Director of AAFE, expressed gratitude for Attorney General James’s efforts, stating, “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.” AAFE also collaborated with officials to prevent evictions and facilitate the redevelopment of the property as a middle-income cooperative, offering a glimmer of hope after years of uncertainty.

Wu’s deception began in January 2013 when he submitted an offering plan to the Attorney General’s office, but never followed through with the necessary steps for legal condominium creation. Beyond the financial restitution, Wu is now permanently barred from selling securities in New York State, effectively ending his career as a real estate developer. This ruling sends a clear message: exploiting vulnerable communities for personal gain will not be tolerated. The Attorney General’s office will continue to pursue justice for those victimized by fraud and financial crimes across New York.