In reality, Wu never completed the legal steps required to classify the building as a condominium. Despite having no authority to do so, he sold units, and many victims moved into the building.
“Steven Wu preyed on hardworking immigrant families, abused their trust and stole the savings they had set aside to build a stable future,” James said in a news release. “These families believed they were buying homes, when in reality, they were being sold nothing but lies.”
Over the years, Wu stole over $5 million, investigators found. On Jan. 9, the courts awarded his victims $4,227,888, plus 9% interest dating back to 2016.
“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.
What you need to know about fake home sales
This case highlights a form of real estate fraud that some people may be unfamiliar with: fake home sales. Unlike rental scams, where victims often uncover the fraud quickly when they can't access their new home or meet the legitimate owners, this type of fraud can last for years and result in much higher losses.
So how did this happen? According to the Attorney General's office, Wu filed paperwork in 2013 to turn the building on Ovington Avenue into a condominium. However, he never finished the process. The building was never subdivided into individual units, no separate tax lots were created and no legal deeds were drafted. Wu targeted immigrant families, using one-page agreements written in Chinese, rather than formal purchase contracts. The victims had no legal ownership of the homes they were buying.
While the Wu case is one extreme example, real estate fraud happens across the country. According to the FBI’s Internet Crime Complaint Center, real estate investment and rental scams resulted in $173.6 million in losses reported to the agency in 2024, with nearly 9,400 complaints nationwide.
Unlike many real estate fraud cases, this one has a happy ending. In addition to restitution for the families, the attorney general partnered with Asian Americans for Equality to turn the Brooklyn building into a co-operative and allow Wu's victims to remain in their homes while offering a path to legitimate homeownership.
How to protect yourself from real estate fraud
The impact of real estate fraud can be devastating — financially and emotionally — to families. Here are a few practical steps you can take to protect yourself when buying a home.
Verify ownership through public records: Check county or city property records to confirm who legally owns the building and whether any units are legally recognized as condos or co-ops. Make sure the person you're interacting with is the building owner or a legitimate representative.
