Prosecutors allege Queens man committed deed fraud

1 May 2025

A site in Brooklyn’s Sunset Park has tortured developers for nearly two decades.

In the mid-2000s, developer Andrew Kohen sought to build a Home Depot and residential tower at 6208 Eighth Avenue, but the plan was put on ice due to the 2008 housing crisis and ultimately sold off. In 2014, a trio of investors pitched their own mega project, including a hotel and office space, but those plans also ended in a sale.

Then, a third savior came to Sunset Park.

A group led by Wolfe Landau’s Watermark Capital and Marvin Azrak’s Maguire Capital snapped up the previous group’s stake in 2023 and assumed the property’s debt in a series of transactions. In total, the group shelled out between $75 million and $80 million. But sharp-elbowed lender Rialto Capital Group initiated a foreclosure on the site in 2024, alleging the owners had defaulted. Nursing home mogul Daryl Hagler provided rescue financing, saving the property from foreclosure.

Now, the Brooklyn District Attorney’s office alleges one of the previous owners illegally sold part of the property without proper consent.

The DA’s office claims Wing Fung Chau of Bayside, Queens sent over forged documents, including fake signatures from an accountant, in order to proceed with a sale.

Prosecutors allege the deed fraud ultimately netted Chau $7.2 million in cash. Chau has been charged with two counts of first-degree grand larceny and three counts of first-degree falsifying business records.

The DA’s release did not mention anything about the current or past history of the site. It is unlikely that the indictment will impact the project’s plans.

But it marks another twist in the wild and improbable saga of the long-vacant Brooklyn site. Usually, deed fraud cases involve single-family home sales, not large-scale commercial projects.

The current developers, a team of Watermark and Rubin Equities, are now seeking to build a 497-unit residential complex on the site. The group just secured a $210 million construction loan.

Here’s how the scheme worked, according to the DA.:

A corporation, 37-19 Realty, controlled a 25 percent interest in 6208 8th Avenue. The investors in this entity consisted of Wing Fung Chau, Ai Yun Chen — who was the president of the corporation — and another investor, Tu Kang Yang.

On September 28, 2021, Chau allegedly signed a memorandum of contract to sell the 37-19 Realty’s interest in 6208 8th Avenue to an outside investor, American Premium Realty. To do so, Chau allegedly forged Chen’s signature.

Soon after, Chau found an even better offer and allegedly negotiated new terms with another investor. This time, he inked an agreement to sell the corporation’s interest in the property for about $7.2 million cash to Watermark Capital, which also agreed to assume existing debt.

Before closing, Watermark allegedly required proof from Chau that Chen, the president of 37-19 Realty, agreed to sell her interest in the property. In addition, the buyer requested proof that American Premium Realty no longer had a contract to buy an interest in the property, per the indictment. Watermark also allegedly requested a letter from the company’s accountant regarding its tax filings.

On the day of the closing, November 18, 2021, only Chau appeared on behalf of 37-19 Realty. He allegedly sent over forged documents. One document had Chen’s forged signature, another document had American Premium Realty’s forged signature stating termination of the contract and one included Chau’s accountant’s forged signature falsely claiming 37-19 Realty failed to file taxes in 2019 and 2020.

Chau allegedly transferred the proceeds of the sale to bank accounts only he controlled. He withdrew almost all of it within eight months of the closing. Chen’s attorney contacted the District Attorney’s office, leading to the investigation and indictment.

This isn’t Chau’s only legal run-in. There are a few outstanding civil lawsuits against Chau, including one brought by the company, 37-19 Realty, alleging fraudulent conveyance.