Justice Department says new Florida law restricting Chinese land ownership violates Fair Housing Act

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.

Member Of White Supremacist Group Charged for Allegedly Defacing Synagogue with Neo-Nazi Symbols

A Michigan man was indicted for conspiring with others and allegedly defacing Temple Jacob – a Jewish synagogue in Hancock, Michigan.

According to the court documents, Nathan Weeden, 23, of Houghton, and co-conspirators Richard Tobin, of New Jersey, and Yousef Barasneh, of Wisconsin defaced Temple Jacob with swastikas and symbols associated with The Base, a multi-state, white supremacist group.

In September 2019, Weeden, Tobin, and Barasneh – all members of The Base – allegedly used an encrypted messaging platform to discuss vandalizing property associated with African Americans and Jewish Americans. Weeden and his co-conspirators dubbed their plan, “Operation Kristallnacht,” which in German means “Night of Broken Glass” and is in reference to the events that took place on Nov. 9 – 10, 1938, in which Nazis murdered Jewish people and burned and destroyed their homes, synagogues, schools and places of business. Weeden allegedly carried out this plan on Sept. 21, 2019, when he spray-painted swastikas and symbols associated with The Base on the outside walls of Temple Jacob.

Weeden is charged with one count of conspiracy against rights and one count of damage to religious property. Weeden faces a maximum penalty of 10 years in prison and a $250,000 fine and a maximum penalty of one year in prison and a $100,000 fine, respectively. Weeden was arrested on June 29.

The FBI investigated the case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Hancock Police Department.

Assistant U.S. Attorney Nils Kessler for the Western District of Michigan and Trial Attorney Eric Peffley of the Civil Rights Division’s Criminal Section are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Weeden Indictment

HUD Charges New York Corporation and Associated Entities for Targeting Black Caribbean Homeowners in Fraudulent Mortgage Scam

The U.S. Department of Housing and Urban Development (HUD) announced today that it has charged multiple entities and individuals related to the Homeowner Assistance Services of New York (“HASNY”) with housing discrimination for perpetrating a scheme to deceive distressed homeowners into forfeiting title to their homes. HUD’s charge alleges that HASNY, Amir Meiri, Herzel Meiri, Ron Meiri, Rajesh Maddiwar, Yudhamann Prashad, Jacob Samra, Springfield Realty of New York, Inc., Martin Development and Management, LLC, Launch Development, LLC, 272 Milford Street, LLC, Advill Capital, LLC, and Petermark II, LLC targeted New York City homeowners on the basis of race, color, or national origin in violation of the Fair Housing Act. Read the Charge.

The Fair Housing Act prohibits entities and individuals involved in real estate-related transactions from discriminating in making available such transactions or in the terms and conditions of such transactions because of race, color or national origin. The Act also prohibits anyone from making housing unavailable because of race, color, or national origin and from coercing or interfering with individuals who are exercising their fair housing rights. This includes targeting individuals because of their race, color, or national origin for fraudulent mortgage and foreclosure prevention assistance to gain title to their homes.

“It is imperative that we ensure hardworking families, regardless of racial and ethnic background, are protected against all acts of housing discrimination,” said HUD Secretary Marcia L. Fudge. “The Fair Housing Act is the law of the land – and today’s charges shows HUD’s commitment to rooting out these sorts of injustices across the country.”

“Perpetuating a coordinated discriminatory mortgage rescue scam is not only illegal, it is unconscionable,” said Demetria L. McCain, HUD’s Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity. “HUD will continue to hold those who prey on homeowners because of the color of their skin or the nation of their origin accountable for violating the Fair Housing Act.”

HUD’s Charge of Discrimination, filed on behalf of seven homeowners, alleges that HASNY and its associates targeted the homeowners for fraudulent mortgage and foreclosure prevention assistance by filing illegitimate liens and using telemarketing to convince homeowners to engage with HASNY for refinance assistance. After the homeowners accepted their offer of assistance, they used false promises of legal assistance, reassurances, and outright lies to convince the homeowners to sign documents that unknowingly sold their homes to Martin Development, LLC and Launch Development, LLC, which resulted, for most, in efforts by Herzel, Amir, and Ron Meiri to force them to vacate their homes. HASNY’s actions were disproportionately concentrated in neighborhoods which had a high majority of persons of color, specifically persons who are Black and of Caribbean descent. They also used “affinity marketing” to gain the trust of elderly, vulnerable, and distressed homeowners by employing telemarketers who brought up their shared national origin and utilized cultural practices to build relationships and trust with the homeowners.

The U.S. Department of Justice previously criminally charged Herzel Meiri, Amir Meiri, and Rajesh Maddiwar, as well as several other HASNY employees, with bank and wire fraud crimes stemming from the conduct alleged in the Charge. Respondents Herzel Meiri and Amir Meiri pleaded guilty, and Rajesh Maddiwar was convicted after a jury trial and later disbarred for his involvement.

“The fraudulent and discriminatory actions of HASNY are wholly unacceptable,” said HUD’s General Counsel Damon Smith. “HUD will take action when companies or individuals conspire to defraud homeowners because of their race, color, national origin or other protected characteristic.”

A United States Administrative Law Judge will hear HUD’s Charge unless any party to the Charge elects to have the case heard in federal district court. If an administrative law judge finds, after a hearing, that discrimination has occurred, the judge may award damages to the homeowners for their losses as a result of the discrimination. The judge may also order injunctive relief and other equitable relief, to deter further discrimination, as well as payment of attorney fees. In addition, the judge may impose civil penalties to vindicate the public interest. If a federal court hears the case, the judge may also award punitive damages to the homeowners.

Property Management Company to Pay Nearly $75,000 to Resolve Servicemembers Civil Relief Act Claims

The Justice Department today announced that FPI Management Inc. (FPI) has agreed to pay $74,087 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by imposing unlawful charges on nine servicemembers who were exercising their right to terminate their apartment leases after receiving military orders to relocate.

“The right for servicemembers to terminate leases without penalty when military orders send them elsewhere is a critical protection for people who already sacrifice so much,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to enforce federal civil rights laws to ensure that paying rent for housing they no longer need is not another sacrifice servicemembers must bear.”

“The SCRA protects servicemembers who have answered our country’s call to serve,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “The U.S. Attorney’s Office and our partners in the Civil Rights Division stand ready to vindicate those rights, to allow our servicemembers to focus on their duty and relieve stress on them and their families.”

The SCRA extends various protections to servicemembers to allow them to devote their entire energy to the national defense. The SCRA provides protections for servicemembers in areas such as evictions, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, interest rates, foreclosures and automobile leases. The SCRA also allows servicemembers to terminate their residential leases after entering military service or receiving military orders for a permanent change of station, deployment or retirement. Landlords are prohibited from imposing an early termination charge on servicemembers who terminate their leases under the SCRA.

The department launched an investigation into FPI’s leasing practices after receiving a referral from Coast Guard Legal Assistance about two instances where FPI attempted to require servicemembers who were terminating their leases early under the SCRA to repay discounts they had received when they signed the lease. In one case, FPI required Coast Guard Petty Officer First Class Aaron Gomez and his wife to repay $8,590 in lease concessions after they terminated their lease at an apartment building in Oakland, California, near Coast Guard Island Alameda. In the other case, FPI told Coast Guard Petty Officer First Class William Fuchs that he would have to repay $7,838 in lease incentives after he terminated his lease at the same apartment building. Fuchs had just received military orders to relocate Charleston, South Carolina.

In a complaint filed in the U.S. District Court for the Eastern District of California, the department alleges that FPI unlawfully imposed early termination charges on a total of nine servicemembers who had exercised their right to terminate their residential leases upon receipt of qualifying military orders.

Under the consent order, which still must be approved by the court, FPI has agreed to pay a total of $51,587 to the 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 training its employees on the SCRA.

Since 2011, the Justice Department has been awarded over $481 million in monetary relief for over 146,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.

Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil