A recent federal court filing details allegations that a consumer was sold a multimillion-dollar residence with hidden mold and water damage, raising questions about real estate disclosure practices and protections for vulnerable buyers. The complaint was filed by John Sacchi on March 14, 2026, in the United States District Court for the Southern District of New York against Tanu S. Reddi (also known as Tanu Gillespie) and Compass Greater NY, LLC.
According to the filing, Sacchi describes himself as a senior citizen stroke survivor with respiratory difficulties who purchased a home for $5,350,000 in Bronxville, New York after being solicited by Reddi and Compass. The complaint states that Reddi served as both owner and de facto general contractor of the property while Compass acted as the real estate broker facilitating marketing and sales transactions.
Sacchi alleges that Reddi knowingly misrepresented the condition of the house through false advertising and by certifying on New York State’s Property Condition Disclosure Statement that there had been no water penetration or damage to the property. He claims these statements were false, stating: “Defendants’ concerted fraudulent activity effected a $5,350,00.00 sale and a commission for Compass of approximately $187,250.00 for a newly-constructed but mold-infested Damaged Home that had remained unsold for seven years.”
The complaint outlines that after moving into the home on March 4, 2026, Sacchi discovered buckled flooring within two days. Subsequent professional inspections revealed extensive mold growth and evidence of significant undisclosed water infiltration and structural deterioration. Sacchi asserts that “the full extent of the damage remains unknown” because further investigation requires opening up floors, walls, ceilings, and baseboards.
Sacchi further alleges that both Reddi and Compass failed to respond to his repeated inquiries regarding the origin or history of the water damage—information he argues is necessary to mitigate further harm or determine if remediation is possible. The filing states: “Defendants continue to compound the damages by refusing to respond to Consumer’s inquiries regarding the origin of the damage,” adding that such information could help prevent recurrence or reduce costs.
The legal complaint brings multiple causes of action including violation of New Jersey’s Consumer Fraud Act (N.J.S.A. 56:8-2.2 et seq.), fraud, violations of New York General Business Law sections 349 (deceptive acts) and 350 (false advertising), breach of contract, breach of contractual duty of good faith and fair dealing, and negligence.
Sacchi claims entitlement to treble damages under both New Jersey’s Consumer Fraud Act—which provides enhanced penalties for schemes perpetrated against senior citizens or disabled persons—and under relevant New York statutes allowing up to three times actual damages per violation plus attorneys’ fees.
The plaintiff seeks compensatory damages; statutory damages including treble damages; special damages; punitive damages; restitution; disgorgement; injunctive relief requiring defendants to disclose all information about past water penetration or repairs; rescission of the purchase contract; return of his $5.35 million purchase price; prejudgment interest; costs; reasonable attorneys’ fees; “and all such other and further relief as the Court deems just and proper.” The total monetary relief sought is stated as greater than three times the purchase price ($16,050,000).
The complaint also notes prior public records suggesting Reddi had been involved in other allegedly fraudulent real estate transactions abroad but does not elaborate on their relevance beyond constructive notice arguments directed at Compass.
Plaintiff is represented by attorney Stephen J. Simoni from Simoni Consumers Class Action Law Offices in Florham Park, New Jersey. The case number is 7:26-cv-2102.
Source: 726cv2102_John_Sacchi_v_Tanu_S_Reddi_Complaint_Southern_District_of_New_York..pdf
