A recent court filing alleges that a buyer was misled into purchasing a luxury residence for $5,350,000 that was later discovered to be infested with mold and plagued by undisclosed water damage. 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 defendants Tanu S. Reddi (also known as Tanu Gillespie) and Compass Greater NY, LLC.
According to the complaint, Sacchi is a senior citizen and stroke survivor who suffers from respiratory difficulties. He claims he was solicited by the defendants through various means including telephone calls, text messages, and internet listings to purchase the property located in Bronxville, New York. The document states that Reddi owned the property and acted as its de facto general contractor while Compass provided real estate brokerage services for the transaction.
The lawsuit asserts that both Reddi and Compass engaged in fraudulent activity by falsely advertising the condition of the house and certifying on New York State’s Property Condition Disclosure Statement that no water penetration or damage had occurred at the residence. The complaint details that after purchasing the home on March 4, 2026, Sacchi noticed floor buckling within two days. Subsequent professional inspections revealed extensive mold growth and evidence of significant undisclosed water infiltration.
Sacchi alleges that despite his repeated inquiries about the origin and extent of the damage—information necessary to mitigate further harm—the defendants failed to respond or provide any assistance. “Instead, Reddi has provided no response and Compass failed to view the damage and instead threatened to sue Consumer for attorneys’ fees,” according to statements in the filing.
The document also claims that Compass allowed Reddi to use its marketing resources despite allegedly being aware or having reason to be aware of her fraudulent conduct. It is alleged that this enabled Reddi to earn hundreds of thousands of dollars in commissions from sales transactions involving properties with similar issues.
Further allegations include assertions that prior attempts were made by other brokers to sell the same property over seven years without success due to apparent concerns about its condition. The complaint notes: “a succession of prior brokerage companies…undoubtedly wanted no part of an apparent fraudulently marketed Damaged Home.” Additionally, it is claimed that after being informed about false representations regarding property taxes in advertisements, both defendants continued marketing efforts using inaccurate figures.
The legal arguments presented span several causes of action: violation of New Jersey’s Consumer Fraud Act (N.J.S.A. 56:8-2.2 et seq.), common law fraud, violations under 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, as well as negligence.
Sacchi seeks compensatory damages including treble damages as prescribed by state statutes; statutory penalties—including up to $30,000 per violation if perpetrated against senior citizens or disabled persons; punitive damages; restitution; disgorgement; injunctive relief requiring full disclosure about all water penetration events at the property; rescission (cancellation) of the purchase contract; prejudgment interest; costs; reasonable attorneys’ fees; and any other relief deemed appropriate by the court. According to calculations referenced in his prayer for relief section, Sacchi estimates potential total monetary recovery could exceed three times his original purchase price—over $16 million.
The case is identified as No. 7:26-cv-2102 before the United States District Court for the Southern District of New York. Plaintiff John Sacchi is represented by attorney Stephen J. Simoni from Simoni Consumers Class Action Law Offices with co-counsel Jardim Meisner Salmon Sprague & Susser P.C.
Source: 726cv02102_John_Sacchi_v_Tanu_Reddi_Complaint_Southern_District_of_New_York .pdf
