Housing and Civil Enforcement Cases
United States v. Joseph Earl Lucas (S.D. Ohio)
On February 21, 2024, the United States filed an amended complaint in United States v. Joseph Earl Lucas (S.D. Ohio). The original complaint, which was filed on August 31, 2023, alleges that Joseph Earl Lucas discriminated on the basis of sex in violation of the Fair Housing Act by sexually harassing female tenants and applicants since at least 2004. The complaint alleges that Mr. Lucas requested sex acts from female tenants and applicants, subjected female tenants to unwelcome sexual touching, made unwelcome sexual comments and advances to female tenants and their female guests, repeatedly drove by and entered female tenants’ homes without their permission, demanded that female tenants engage in sex acts with him in order not to lose housing, and offered to reduce rent or excuse late or unpaid rent in exchange for sex acts. The lawsuit also alleges that Mr. Lucas initiated evictions or threatened to evict female tenants who refused his sexual advances. The amended complaint names Jacob Bush, Joie Carr, and Jeremy Carr as defendants in addition to Joseph Earl Lucas. The amended complaint alleges that Jacob Bush, Joie Car, and Jeremy Carr engaged Joseph Earl Lucas to act as their agent to manage Subject Properties they owned or co-owned during relevant times. The lawsuit, which is the result of a joint investigative effort with the Department of Housing and Urban Development Office of Inspector General, seeks monetary damages to compensate persons harmed by the alleged harassment, a civil penalty to vindicate the public interest and a court order barring future discrimination.
United States v. American Bank of Oklahoma (N.D. Okla.)
On October 3, 2023, the court entered a consent order in United States v. American Bank of Oklahoma (N.D. Okla.). The complaint, which was filed on August 28, 2023, alleged that American Bank of Oklahoma violated the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act (FHA) by engaging in unlawful redlining in the Tulsa, Oklahoma Metropolitan Statistical Area. Specifically, the complaint alleged that the defendant refrained from providing mortgage services to majority-Black and Hispanic neighborhoods and discouraged prospective applicants from those neighborhoods from applying for credit. The consent order requires American Bank of Oklahoma to invest at least $950,000 in a loan subsidy fund to increase access to credit in majority-Black and Hispanic neighborhoods; spend $100,000 on community partnerships to provide services that increase access to residential mortgage credit; and spend $100,000 on advertising, outreach, and consumer financial education in majority-Black and Hispanic communities. The consent order also requires American Bank of Oklahoma to open a loan production office in a Black and Hispanic census tract which will provide access to mortgage services and a community room available to the public; ensure at least two mortgage loan officers are dedicated to serving majority-Black and Hispanic neighborhoods in Tulsa; and conduct a research-based market study to help identify the needs for financial services in majority-Black and Hispanic neighborhoods in Tulsa.
Press Release - 8/28/2023
United States v. Salazar (E.D. Cal.)
On August 28, 2023, the United States filed an election complaint in United States v. Salazar et al. (E.D. Cal.). The complaint alleges that the defendants violated the Fair Housing Act by discriminating and retaliating against the tenant of a single-family home in Bakersfield, California. Specifically, the complaint alleges that the maintenance worker of the property repeatedly asked the tenant to engage in sexual acts with him, persistently commented on her appearance, touched her body without her consent and took digital photographs of framed print pictures in her home of her and her daughter. The tenant reported the harassing behavior to the property manager, who is also the maintenance worker’s father. After she reported the harassment and threatened to contact a lawyer or the police if it continued, the maintenance worker and manager refused to fix a leaking gas line in her dwelling, causing her to go without heat for one month and consequently forcing her to move out. The complaint also alleges that the property owner is vicariously liable for the maintenance worker’s and manager’s conduct. The case was referred to the Division after the U.S. Department of Housing and Urban Development (HUD) received a complaint, conducted an investigation, and issued a charge of discrimination.
United States v. Iraj Shambayati – (S.D. Ga.)
On April 29, 2024, the court entered a consent order in United States v. Iraj Shambayati, 1511 Rosewood LLC and IDHD Properties LLC (S.D. Ga.). Defendant Shambayati is a landlord who owns and manages over 45 residential properties in and around Savannah, Georgia. The complaint, which was filed on August 8, 2023, alleged that since at least 2008, Shambayati harassed female tenants and prospective tenants by making repeated and unwelcome sexual comments and advances, inappropriately touching their bodies without their permission, entering their homes without their permission, requesting sexual acts in exchange for rent or other housing-related benefits, and taking retaliatory actions against female tenants who rejected his sexual advances or complained about the harassment. The consent order requires Shambayati and two other defendants, 1511 Rosewood LLC and IDHD Properties LLC, to pay $590,000 in monetary damages to female tenants and prospective tenants harmed by Shambayati’s conduct, and a $10,000 civil penalty to the United States. The order requires defendants to vacate any retaliatory eviction judgments obtained against these tenants and to take steps to correct the tenants’ credit histories. The defendants are also prohibited from managing residential rental properties in the future. The consent order further requires defendants to retain an independent property manager for the properties, implement a sexual harassment policy and complaint procedure, and submit detailed reports regarding property management activities and compliance with the terms of the consent order.
United States v. Melinda Bautista Teruel (N.D. Cal.)
On July 17, 2023, the United States filed a Fair Housing Act “election” complaint in United States v. Teruel, et al. (N.D. Cal). The complaint alleges that the manager of a two-story, seven-unit apartment complex in Burlingame, California, discriminated on the basis of familial status in violation of 42 U.S.C. §§ 3604(a), (b), (c) and 3617 by pressuring a couple, who had two babies during their tenancy, to move out of their one-bedroom apartment and then falsely accusing the family of causing significant damage to the unit after the family moved out. The complaint names Melinda Bautista Teruel as a defendant both in her individual capacity and as trustee of the Melinda Bautista Teruel 1992 Revocable Trust, which owned the property during the family’s tenancy. The case was referred to the Division after the U.S. Department of Housing and Urban Development received a complaint, conducted an investigation, and issued a charge of discrimination.
Porteé v. Morath (W.D. Tex.)
On July 21, 2023, the court granted the plaintiff’s motion for a preliminary injunction in the first case brought nationwide under a new Servicemembers Civil Relief Act’s (SCRA) provision that guarantees the portability of certain professional licenses of U.S. servicemembers and their spouses when they relocate pursuant to military orders. The court found that a military spouse met all four prongs of the preliminary injunction standard in her case alleging that Texas state licensing agencies failed to recognize her out-of-state school counselor licenses, as required by the SCRA. The United States had filed a Statement of Interest on July 13, 2023, arguing that plaintiff was likely to succeed on the merits of her claim that her school counseling licenses are covered under the new provision, vigorous enforcement of the provision serves the public’s exceptionally strong interest in national defense and military readiness, and plaintiff has standing to bring her case.
Press Release - 7/13/23
United States v. AION Management, LLC, et al. (D. Del.)
On October 10, 2023, the United States filed an amended complaint in United States v. AION Management, LLC, et al. (D. Del.). The complaint, which was originally filed on July 7, 2023, alleged that the defendants discriminated based on disability in violation of the Fair Housing Act (FHA) by denying requests for reasonable accommodations in the form of assigned parking spaces. The case was referred to the Division after the U.S. Department of Housing and Urban Development (HUD) received a complaint, conducted an investigation, and issued a charge of discrimination.
Shen v. Simpson (N.D. Fla.)
On June 27, 2023, the United States filed a Statement of Interest in Shen v. Simpson (N.D. Fla.), a lawsuit challenging provisions of a new Florida law, SB 264. Among other things, the law prohibits individuals who are “domiciled” in certain foreign countries, particularly China, from purchasing real property in the state; sellers of real property and individuals who own or acquire real property in violation of the law may be subject to civil and criminal penalties. In its filing, the United States supports the ACLU’s motion to enjoin implementation of these provisions. The brief explains that SB 264’s property ownership restrictions violate the Fair Housing Act because they discriminate based on a person’s national origin and violate the Equal Protection Clause of the Fourteenth Amendment because the restrictions are not narrowly tailored to serve any compelling government interest. The United States Attorneys in all three Florida judicial districts signed on to the brief.
United States v. FPI Management, Inc. (E.D. Cal.)
On June 14, 2023, the court entered a consent order in United States v. FPI Management, Inc. (E.D. Cal.). The complaint, which was filed on June 13, 2023, alleged that FPI, a property management company, violated the Servicemembers Civil Relief Act (SCRA) by requiring nine servicemembers who were exercising their SCRA right to terminate their residential lease to repay lease incentives they had received. The consent order requires the defendant to pay a total of $51,587 to the nine servicemembers and a $22,500 civil penalty to the United States. The order also requires FPI to repair the servicemembers’ tenant database entries, implement new policies and procedures that comply with the SCRA, and train its employees on the SCRA.
Press Release - 6/13/23
United States v. ESSA Bank (E.D. Pa.)
On June 9, 2023, the court entered a consent order in United States v. ESSA Bank & Trust (E.D. Pa.). The complaint, which was filed on May 31, 2023, alleged that ESSA violated the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act (FHA) by engaging in unlawful redlining in the Philadelphia Metropolitan Statistical Area by avoiding providing mortgage services to majority-Black and Hispanic neighborhoods and discouraging prospective applicants from those neighborhoods from applying for credit. The consent order requires ESSA to: (1) invest at least $2.92 million in a loan subsidy fund to increase access to credit in majority-Black and Hispanic neighborhoods; (2) spend an additional $125,000 on community partnerships and $250,000 on advertising, outreach, consumer financial education, and credit counseling in majority-Black and Hispanic communities; (3) hire two new mortgage loan officers to serve its existing branches in West Philadelphia; and (4) conduct a research-based market study to help identify the needs for financial services in communities of color.
Press Release (May 31, 2023)
United States v. Timothy Britton (W.D. Pa.)
On May 19, 2023, the United States filed a complaint in United States v. Timothy Britton, et al. (W.D. Pa.). The complaint alleges that Timothy Britton discriminated on the basis of sex in violation of the Fair Housing Act (FHA) by sexually harassing female tenants since at least 2016. The complaint alleges that Mr. Britton made repeated and unwelcome sexual comments to female tenants, touched female tenants’ bodies without their permission, requested sexual contact, offered reduced or free rent in exchange for sexual contact, and took adverse housing-related actions against female tenants who refused his sexual advances. The complaint also names as a defendant Britton Enterprises, LLC, which operates the rental properties where the harassment occurred. The complaint seeks monetary damages for individuals who have been harmed by the defendants’ conduct, a civil penalty from the defendants to vindicate the public interest, and an order prohibiting future discrimination.
Press Release – (5/19/2023)
United States v. Abraham Kesary (C. D. Cal.)
On September 29, 2023, the court entered a consent order in United States v. Abraham Kesary, et al. (C.D. Cal.). The complaint, which was filed on May 11, 2023, alleged that the Defendants discriminated on the basis of sex in violation of the Fair Housing Act (FHA) because Mr. Kesary, a property manager, sexually harassed female tenants since at least 2012. The complaint also named the owner of the property where the harassment occurred, M&F Development, LLC (M&F) as a defendant in the case. The consent order requires that M&F pay $120,000 to compensate individuals harmed by the harassment and a $10,000 civil penalty to the United States. In addition, the consent order prohibits Mr. Kesary from managing rental housing and requires M&F to retain an independent property manager to manage its rental property, obtain fair housing training, and implement non-discrimination policies and complaint procedures to prevent sexual harassment at the property in the future.
Press Release - 9/29/2023
Press Release - 5/12/2023