Ping Cheung, known as Penny to her friends and neighbors, is a Chinatown resident and proprietor. She grew up in Guangzhou, China, but has lived in NYC for 45 years. She is the proud mother of a college graduate, and helped raise her own brothers, too, when their mother passed away. She scrubs bathrooms and sweeps hallways so that her tenants don’t have to, and makes sure to separate her buildings’ compost from recycling. And if nothing else, she always pays her mortgage on time.
Cheung spent her whole life building this reputation, doing well on her family name. But a few years and a couple of banks ago, her stature got caught in a web of allegations. Now, she’s fighting to get it back.
In 2017, she took out a $10-million mortgage with Global Bank, a Chinese-American lender, for 43 and 45 Mott St., in the heart of Chinatown. She’s been the owner as well as the super of both buildings ever since, and manages a total of 31 apartments. To pay off the loan, she pays almost $80,000 a month on top of growing taxes. It’s a steep schedule, but she makes it work.
Also in 2017, Cheung and her son, Kevin Ye, were approached by a restaurant CEO, Peter Park, about opening Seoul Garden Bowery, a Korean BBQ establishment, on the first floor of 43 Mott. Ye and Penny agreed to partner with Park. They assumed 20 percent ownership of the restaurant, and Park and his wife owned the other 80 percent. Together, they signed a $1.2-million loan with New Bank, a Korean-American bank, to open Seoul Garden.
When the pandemic hit a few years later, the restaurant closed, and Cheung, Ye and Park still owed around $880,000 to NewBank. Cheung and Ye’s 20 percent came out to around $380,000, and Park’s 80 percent came out to almost $500,000.
“I don’t care if the pandemic hit, this is my share and I want to pay it because I want a clean slate. I want to pay my payments,” said Cheung, according to Maya Haddad, the representative speaking on behalf of Penny. So, Ye went to NewBank and paid their $380,000.
But shortly after the restaurant closed, Park and his wife disappeared. They have yet to be located, leaving the remaining 80 percent of the loan unpaid.
Anthony Hsu, an affiliate with Global’s participant bank, Amerasia, knew Cheung for more than 15 years and advised her to put $500,000 in escrow with Global Bank. Penny, who didn’t have an attorney present, was under the impression that the money would go toward the remaining NewBank mortgage.
“I always understood that Global would cure the default with NewBank by paying NewBank the $500,000,” said Cheung, according to her affidavit.
Instead, the $500,000 went toward a Cash Collateral Fund with Global Bank. Haddad says Cheung, whose native language is Cantonese, was not properly informed that what she was signing was a forbearance agreement, an arrangement by which a lender agrees to temporarily reduce or postpone payments. She did not know that the money would be stored or that the agreement could give Global Bank the power to cross-default.
A cross-default clause allows a lender to declare a default on a loan if a different loan is defaulted on, even if the first loan is in good standing.
“I don’t read English. I just believe them,” said Cheung. “I only speak English, I don’t read it.”
Ye, who does read and speak English, expressed how he thinks the contract was deliberately confusing.
“They ambiguously worded the forbearance agreement on purpose, saying that they didn’t have to pay NewBank, just that they can if they wish to pay NewBank. They worded it that way so they were able to control the cross-default,” said Ye. “Knowing the system definitely allows you to play the system,” he added, referencing Global Bank’s close affiliation with the local Chinese community.
As a result, the $500,000 did not go to NewBank, and the $1.2-million loan went into default. Additionally, Global Bank raised the interest rate on the original mortgage loan to 20 percent, starting foreclosure proceedings on Cheung’s two Mott Street properties as well.
“My name is very big in the Chinese community, and now I can’t even lift my head up and walk in the streets,” said Cheung. “They’re all working together against this community.”
“Why didn’t [Global] just pay NewBank and close [the restaurant loan]? Why are they charging her $3.7 million for interest that they changed on their own?” said Haddad. “That’s their doing, with the forbearance agreement that they made her sign with their own notary, without an attorney.”
The buildings were scheduled to be auctioned off on Jan. 8, 2025, but Cheung took her documents and dignity to new lawyers. She’s not giving up.
Two days before the auction was set to take place, her team brought the case to the attention of NYS Attorney General Letitia James. Judge Francis Kahn then issued a ruling stopping the foreclosure on the grounds of “avoidance of doubt,” pending further proceedings.
Kahn subsequently allowed the foreclosure proceedings to resume.
On July 7, 2025, a motion was filed on behalf of Cheung’s lawyer, James DeCristofaro, appealing Judge Kahn’s June ruling in which he held that “the claims of Ye and Penny that their former counsellor acted outside the scope of his authority are entirely conclusory and virtually uncorroborated.”
But appealing that June ruling is just the start. As of July 9, Cheung is countersuing Global Bank and Amerasia Bank for $50 million—$25 million each. The banks face claims of breach of fiduciary duty, breach of the implied covenant of good faith and fair dealing, failure of consideration, accounting, and any other the court deems proper.
“I’ve dealt with a lot of banks in my lifetime, and this bank in particular, Global Bank, they lend to own the properties,” said Haddad. “They’re not really lending to work with their clients.”
Global Bank and Amerasia Bank did not return an email seeking comment by press time.
“Knowing the system definitely allows you to play the system,” Kevin Ye, son of Ping “Penny” Cheung.