Ronald Shute has worked in real estate for 44 years – and there’s no end in sight.
“No, I can’t afford to retire yet,” the witness laughed bitterly.
It likely didn’t help that the Ajax realtor says he lost $100,000 after investing with self-proclaimed “Crypto King” Aiden Pleterski.
Pleterski, 27, has pleaded not guilty to fraud over $5,000 and money laundering, and is representing himself at his jury trial.
Shute is the eighth investor to testify the flashy young Whitby man told them his investing prowess could make them an average of 5% a month and he’d guarantee they wouldn’t lose a penny from their initial investment in AP Private Equity.
“It seemed too good to be true,” Shute admitted.
Prosecutors allege he was right.
Allegedly used investors’ cash to fund extravagant lifestyle
In their opening statement to the jury earlier this week, Crown attorneys Scott Patterson and Akshay Aurora said they’ll show the “Crypto King” was never investing their money at all. Instead, he was using their cash to fund his extravagant lifestyle of private jet travel, joyrides in Lamborghinis and McLarens and million-dollar shopping sprees.
Those trappings of success on his social media and in real life helped convince prospective clients that Pleterski – only 22 at the time – had the right stuff to make them the same kind of money.
“I seen a picture of him sitting in a private jet, pictures of him with his girlfriend flying and entertaining all over the place,” Shute testified. “It looked like he was definitely doing well for himself.”
Fitness club owner David Hotrum told the court he researched Pleterski online and found a Forbes magazine article about his success at investing heavily in the crypto area. At their first meeting in January 2021, the young trader pulled up in an expensive car and then showed off his collection of other luxury rides.
Everything looked pretty legit to me,” he testified.
Hotrum invested $220,000 with promises that Pleterski could double his money in four months and there was “zero risk” because he had a $300 million slush fund to protect everyone’s initial investment.
A few months later, the business owner wanted to withdraw the principal and said he was told it wouldn’t be a problem – he’d get it within five business days. Instead, all he ever got back was $50,000.
At least Hotrum saw some of his cash again.
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Realtor invested $100,000 inheritance
Shute was partners with Luciano Valerio, who has already testified that he believed he was making a good return on his investment with Pleterski. So the realtor followed his lead and put in the $100,000 he’d inherited after his mother passed away.
During a phone call with Pleterski in March 2022, Shute said he asked for assurances that he wouldn’t be investing strictly in cryptocurrency.
“I’m not familiar with that. I don’t trust it. To me it doesn’t make any sense,” Shute said. “And he said, no, the majority of his investment was done in foreign exchanges.”
The terms of the contract also seemed positive: In addition to a return of about 5% a week, of which Pleterski would take a 30% cut of the gains, “he also stated that he would guarantee the $100,000 that I put in. He said it might take a month or so but if you wanted your money back out at any point, it’s available.”
He never saw it again, he said.
“Did you think your money would be used to pay for Mr. Pleterski’s credit card expenses?” Patterson asked.
“I didn’t think my original deposit would be used for anything other than true trading,” Shute responded.
The prosecutor asked if he’d agreed that any of his money could go to pay off other investors.
“No I did not,” Shute said. “Definitely not.”
Offered a chance to cross examine him, Pleterski, as he has with all but the first witness, once again, declined.
The trial continues.
mmandel@postmedia.com