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Escrow imbroglio demonstrates dangers for Chinese investors
A Chinese investor claims that a NYC law firm skedaddled with $1.04M meant for a property buy
Chinese investors have been swarming the New York City market of late. But a recent lawsuit demonstrates just how risky making multimillion dollar real estate plays from abroad can be.
Investor Hui Ye is accusing Manhattan law firm Gold Scollar Moshan of absconding with over $1.04 million in funds she planned to spend on an apartment at 400 Central Park West, according to the New York Daily News.
She claims that the law firm spent the money she’d transferred into an escrow account and then refused to refund the cash.
Hui Ye says she wired the money in January and was assured by the firm’s attorneys that she did not have to personally attend the closing. But just a few days before the closing, she was informed that the money was no longer available.
Hui Ye closed on the apartment anyway, after scrounging together money borrowed from other sources, but still has not received any of her $1.04 million payment. She’s now suing the law firm for her money plus $500,000 in damages. [NYDN] – Christopher Cameron