Couple on hook for $85K loan after bankrupt company left basement gutted in Mississauga

A Mississauga couple said they were left with a basement in ruins after the contractor they hired stopped working and left them with a $85,000 loan to pay off.

Meadowvale residents Gino and Cristabel Carletti said they hired what they thought was a reputable company, Basilica Construction, to renovate their basement and create a legal basement apartment.

The Carletti’s said they went to the company’s showroom and were impressed with what they saw.

“They had good reviews online,” Gino said.

So they went ahead with the renovation with a loan through Financeit, a company Basilica recommended, Gino said. Financeit gave the loan funds directly to Basilica, the couple said.

In June 2024, the company started the work and their previously finished basement was gutted.

“They took out the walls. They took out the floor, they took out the ceiling, the electrical, everything,” said Gino.

The Carletti’s claimed Basilica asked them to release the full amount of the cost of the renovations, $85,000, before the work was complete.

“They said that if we don’t release the money, they couldn’t continue,” Gino said.

Then the workers stopped coming around December and the basement was left open with a hole for the separate entrance, the couple said. Worried about flooding or break-ins they paid another contractor to finish the separate entrance. They also hired a plumber to fix what workers had pulled out.

In April, the couple stopped payments on the loan.

“Our credit is going to suffer,” said Gino. “But how can we be paying for something that we’re not getting?”

A spokesperson from Basilica told INsauga.com that the company has “formally filed for bankruptcy in full accordance with Canadian law due to severe financial difficulties stemming from unprecedented economic conditions—including inflation, supply chain issues, and delayed payments from commercial clients.”

“This decision was not taken lightly. It followed months of trying to meet all our obligations despite growing financial strain,” Basilica Construction told INsauga.com in an emailed statement. “We did not ‘disappear’ with anyone’s funds, nor act with bad intent. The bankruptcy process is being handled by Licensed Insolvency Trustee, a neutral and court-appointed professional who has taken full control over the company’s assets, liabilities, and communications.”

The Vaughan-based company had taken down its website and social media accounts.

The spokesperson asked INsauga.com to reach out to the trustee before publishing a story.

The trustee declined to comment but court documents on Dodick and Associates website state the Basilica and its associated company, Aqhal, struggled with financial difficulties due, in part, to the loan arrangement.

“Management advised that most of their renovation projects were financed by a third-party lender named Financeit (the Lender),” a preliminary court report states. “The Lender would release 40% of the project value up front to the Companies (Basilica and Aqhal) to begin work and the Companies self financed the remaining 60% until the project was fully completed at which time they would be paid the 60% balance from the Lender. According to Management, while this model reduced collection risk, it also placed significant strain on the Companies’ cash flow since the Companies financed 60% of the project value until completion and it did not have a sufficient line of credit with its bank to cover its cash flow needs.”

Financeit did not provide a statement to INsauga.com. They told CTV that they are not directly involved in services offered by any merchant partner.

The couple reported Basilica to the Better Business Bureau and the Canadian Anti-Fraud Centre. They wanted to file a report with police but were told it is a civil matter.

Recently, the couple said they started speaking on social media with other GTA residents who claim to have similar issues with Basilica.

The court document states that there were more than 30 renovation projects in progress for which it had received funding from either Financeit or directly from customers. These projects had either not yet been started or were at various stages of completion. After the trustee received the contact information of these customers it emailed creditor packages to them.

It’s unclear if the homeowners will get any funds back for unfinished projects.

The Carletti’s daughter, Gina, set up a GoFundMe fundraiser, which had raised over $2,700 by June 26.

“After decades of hard work and sacrifice, instead of enjoying the stability they earned, they are facing overwhelming financial strain and deep emotional distress,” Gina said on the fundraiser page. “They are not ones to ask for help, but I see that this situation is far beyond what they can handle alone.”

In the meantime, the couple is unsure what they will do next. They had planned on creating a basement unit for retirement income. Gino works in manufacturing and recently his hours have been reduced to about two days a week.

“That was planning for our future, right? We can have extra income because when you retire you don’t get enough money,” said Cristabel.

The couple suggests homeowners take care and don’t make final payments until the work is complete.

“Don’t release funds just like that,” Gino said. “Make sure you have control.”