Canadian NBA star wins lawsuit to undo purchase of mansion where Ontario Crypto King lived

Canadian NBA player Shai Gilgeous-Alexander has won what's likely to be a precedent-setting lawsuit to undo his $8.4-million purchase of a Burlington, Ont., lakefront mansion where Ontario's self-described Crypto King Aiden Pleterski used to live.

Last month, a CBC Toronto investigation was first to report on Gilgeous-Alexander's lawsuit to void the sale. The suit alleged the sellers fraudulently misrepresented the luxury home by failing to disclose an alleged series of threatening visits to the property — happening daily, at times — by those looking for Pleterski before the NBA star bought it.

Pleterski, 25, had previously been leasing-to-own the mansion for about $45,000 a month — until his cryptocurrency and foreign exchange investment operation unravelled last year as investors came looking for the more than $40 million they'd given him. 

In a summary judgment issued in November, Ontario Superior Court Justice Robert Centa found there had been fraudulent misrepresentation in the sale. He voided Gilgeous-Alexander's purchase of the home and awarded the basketball player damages for mortgage and insurance payments he's had to pay since starting the lawsuit.

"[The seller] suppressed the truth about the Burlington property, which in this case amounted to a fraudulent misrepresentation," wrote Centa in his Nov. 27 decision. 

"However, it also went further and made positive representations that the property was private and secure. Those representations were knowingly false."

John Zinati, a long-time Toronto real estate lawyer who was not involved in the case, told CBC Toronto this is the first time he's ever seen a judge order a seller to buy back a property after closing.

"I'm pretty shocked by this," he said. "Anybody who is thinking about not disclosing something about a house should think twice because of this decision. From my perspective, it really expands what you have to disclose about a house."

Zinati said that's because in the past, cases involving damages or getting out of real estate contracts for safety reasons generally related to physical issues with the house, like mould or radioactivity.

"There's no claim here that there's a physical problem with the house," he said. "What they're saying is that something external to the physical condition of the house can impact the safety of the residence — but not only that, it will let you out of the deal."

Sumeet (Sonu) Dhanju‑Dhillon, a lawyer for the seller of the Burlington property, declined to comment on the decision. She previously told the Toronto Star her client was "disappointed with the finding that safety concerns at the property in the summer of 2022 were relevant to the listing and sale of the property in 2023 and therefore intends to appeal the decision."

Gilgeous-Alexander's lawyer also declined CBC Toronto's request for comment.

The decision provides further details on how the Oklahoma City Thunder guard and his girlfriend learned about the home's history and Pleterski. As previously reported, just days after moving into their new house, a stranger appeared at the door looking for Pleterski.

Unnerved by the visit, Gilgeous-Alexander's girlfriend reported the incident to police. She was told they had previously received reports of people trying to break into the property. A contact in the private security business also told the couple "Mr. Pleterski had defrauded some 'very bad people' and that someone had threatened to burn down their new house," according to the judgment.