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

New York /
Nov.November 01, 2014 04:00 PM

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


Related Articles

arrow_forward_ios
Churchill Real Estate's Justin Ehrlich and 381 Broadway (Google Maps)

Two-year Tribeca foreclosure saga continues with lawsuit over $20M

Two-year Tribeca foreclosure saga continues with lawsuit over $20M
Vanke US managing director Kai-yan Lee, RFR’s Aby Rosen and 100 East 53rd Street (Photos via Foster + Partners and Getty)

Vanke seeks to remove RFR from Midtown condo project

Vanke seeks to remove RFR from Midtown condo project
Magnum Real Estate's Ben Shaoul and 87 Leonard Street (Getty; StreetEasy)

Tribeca condo owners sue Magnum Real Estate, seeking $7.6M

Tribeca condo owners sue Magnum Real Estate, seeking $7.6M
From left: Ben Ashkenazy, 1991 Broadway, 2067 Broadway and Samuel Gindi (Getty; Google Maps)

Billionaire developer Ben Ashkenazy in feud with investor over reputation, cash

Billionaire developer Ben Ashkenazy in feud with investor over reputation, cash
New York Wheel (S9 Architecture|Perkins Eastman; Pixabay)

Going in circles: Dueling New York Wheel lawsuits emerge

Going in circles: Dueling New York Wheel lawsuits emerge
HFZ's Ziel Feldman and CIM's Shaul Kuba (Getty, iStock)

HFZ sues CIM to halt condo foreclosure sale

HFZ sues CIM to halt condo foreclosure sale
(iStock)

Petition to overturn indoor dining restrictions squashed by judge

Petition to overturn indoor dining restrictions squashed by judge
Gotham Organization COO Phil Lavoie and 432 Park Avenue South (Google Maps)

Gotham Organization sued for unpaid rent at Park Ave South office

Gotham Organization sued for unpaid rent at Park Ave South office
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...