The Real Deal New York

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
November 01, 2014 04:00PM

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

  • Bullied and Damaged by Rent Re

    What made her hire that firm in the first place? And how did she find the legal representation that she is using now?

    • Bullied and Damaged by Rent Re

      If there are a lot of overseas buyers, maybe they should start their own group in China to gather information and share experiences.

  • Marc

    The men is suits are just well dressed thieves. My father called them the worst of whores and after living long enough I cannot agree more.

    • LakeDrive

      Excellent grammar , Einstein

  • Nana

    I want to know ,any one knows about the 2 bids on the land lease building on 101 West 23 St NYC .They told me the offer went from 40 millions to 42 millions from the new Company interested in buying the shares of this building

  • Knowsthetruth

    It wasn’t Mr Gold and it wasn’t Mr Moshan. Who’s left?? The lady with means, motive, opportunity and the lack of any moral compass.

    • LakeDrive

      Rikers Island is in her future