In a long-awaited judicial ruling, the fraud case at 345 Ovington Ave in the Bay Ridge Ridge area of Brooklyn, New York, involving developer Xi Hui Wu (Steven Wu) has finally reached a conclusion. The New York State Supreme Court recently decreed that Wu must be held accountable for his long-standing real estate fraud activities, ordering him to reimburse over $4.22 million to at least 20 victimized Chinese immigrant families, along with a legal interest rate of 9% since 2016.
This ruling, announced by New York State Attorney General Letitia James on the 9th, represents belated justice for the defrauded families. James stated that Wu took advantage of the trust of immigrant families, deceiving them into believing they were purchasing apartments when in reality, he was “selling lies.” She emphasized that this judgment will restore the ill-gotten gains to the affected families and prevent Wu from exploiting New Yorkers through real estate and securities fraud.
The case dates back to 2013 when Wu submitted a Condo Book to the New York State Attorney General’s Office, claiming plans to construct a 25-unit Condo at 345 Ovington Ave. However, investigations revealed that Wu never completed all the necessary procedures with the New York City Finance Department. The building was never legally subdivided into individual units, did not establish separate tax parcels, and failed to generate any legitimate individual apartment ownership certificates.
Regardless, Wu proceeded to “sell” apartments to at least 20 Chinese families. Many buyers paid deposits or even full payments in cash without hiring a lawyer or signing formal purchase contracts, only signing a one-page agreement in simplified Chinese and moving in, believing they had become homeowners.
In reality, these families never obtained any ownership rights and were merely considered tenants.
Prosecutors also pointed out that in addition to collecting down payments and full purchase prices, Wu also charged residents so-called “mortgage payments” and “management fees,” with all funds going directly into his personal account. Over the years, the amount involved exceeded $5 million.
Moreover, Wu submitted false documents to regulatory agencies multiple times, falsely claiming that the purchase funds were deposited into escrow accounts when, in fact, he misappropriated the funds, which was a serious violation of New York State law.
Prosecutors estimated that Wu fraudulently obtained over $5 million from these Chinese families. After the case broke, several victims reported being unable to contact Wu, who was rumored to have absconded with the house purchase and bank loan monies back to China.
The OAG office officially filed charges in November 2022, following years of litigation.
Court records show that Wu did not completely disappear. He continued to participate in legal proceedings through his lawyer and even requested a jury trial in August 2025.
According to a joint letter submitted to the court by the attorneys of both sides, Wu underwent sworn testimony on February 11th of the same year but refused to answer over 180 questions on the grounds of self-incrimination, becoming a basis for the prosecution to oppose his further testimony and advocate for a summary judgment in subsequent proceedings.
In November 2025, the Manhattan Supreme Court ruled that Wu violated the Martin Act and Section 63(12) of the Administrative Law and permanently barred him from engaging in related businesses in New York State. The supplementary order issued this week finalized the specific compensation amounts and interest.
The court issued a final order on January 7th approving the OAG’s partial motion for summary judgment, declaring that all deposits Wu received from potential homebuyers were illicit gains and must be fully refunded or used as compensation for the victims.
Additionally, the court rejected Wu’s defenses, including claims that the victims actually resided in the apartments, thus mitigating damages, and that the OAG interfered with bankruptcy proceedings, leading to the building being sold below market value, citing lack of evidence.
Thomas Yu, the Executive Director of the Asian-American Federation, expressed gratitude for the efforts of the Attorney General’s Office throughout the years, ensuring that the families at 345 Ovington Ave received justice and were spared from eviction. With the assistance of city and state officials, the building was saved from bankruptcy and will be redeveloped into affordable cooperative apartments, allowing residents to continue their dreams of secure housing and homeownership.