How Investors Can Protect Themselves and Their Escrow Funds: Lessons from a Real $500,000 Loss

A federal real‑estate fraud case offers powerful lessons for investors seeking to protect their capital. In Choi v. 37 Parsons Realty LLC , an investor lost $500,000 after wiring funds into an escrow account controlled by a fraudster, Anthony Wong. The court emphasized two key failures: no written escrow agreement and allowing Wong to direct the funds—mistakes that made the loss possible. Here’s how investors can protect themselves from similar schemes. 1. Always Use a Written Escrow…