UNITED STATES OF AMERICA,
     Plaintiff,

v.

CIVIL ACTION NO. 93C 1794

GHEORGHI NEDIALKOV (also known
as GEORGE NEDIALKOV); and
JAMES NEDIALKOV,
     Defendants.

______________________________________

The United States of America alleges:

1. This action is brought by the United States to enforce the provisions of Title VIII of the Civil Rights Act of 1968 (the Fair Housing Act), as amended by the Fair Housing Amendments Act of 1988, 42 U.S.C. §§ 3601, et seg.

2. This court has jurisdiction over this action under 28 U.S.C. § 1345 and 42 U.S.C. § 3614.

3. Defendants Gheorghi Nedialkov (also known as George Nedialkov) and James Nedialkov are residents of the Northern District of Illinois, residing at 2622 West Windsor, Chicago, Illinois, 60602. Defendant Gheorghi Nedialkov is the father of defendant James N. Nedialkov. From approximately April of 1988 until at least September of 1992, defendants owned a residential rental property containing 40 apartments located within the Northern District at 1241 Loyola Avenue, Chicago, Illinois. From approximately April of 1988 until on or about September of 1992, Gheorghi Nedialkov managed the rental property located at 1241 Loyola Avenue, Chicago, Illinois.

4. The property and apartments at 1241 Loyola Avenue, Chicago, Illinois, owned and/or managed by defendants are dwellings within the meaning of 42 U.S.C. §3602(b).

5. The defendants have engaged in a pattern or practice of discrimination against persons on the basis of sex in connection with the rental of dwellings in violation of the Fair Housing Act. Specifically, from 1988 through at least 1992, the defendant Gheorghi Nedialkov implemented this pattern or practice by subjecting female tenants of the property located at 1241 Loyola Avenue to extensive, continuous and unwelcome sexual harassment; conditioned tenancy on the grant of sexual favors; created a hostile environment for female tenants; and retaliated against women who filed complaints of sexual harassment against him. Among the conduct in which the defendant Gheorghi Nedialkov engaged are the following:
   1. conditioning tenancy at the building with acceptance of sexual advances;

   2. making repeated and unwelcome sexual comments and advances to women tenants, including sexual touching and sexual assault;

   3. threatening and taking steps to evict women tenants who filed complaints of sexual harassment against him; and

   4. refusing to make repairs in apartments of women tenants who filed complaints against him and conditioning the making of such repairs on the withdrawal of the complaints.

6. The discriminatory practices described above resulted in the constructive eviction of female tenants from their dwellings thereby making the dwellings unavailable to them because of their sex in violation of Section 804(a) of the Fair Housing Act, 42 U.S.C. §3604(a).

7. The conduct described above, creating a hostile and abusive environment for female tenants and conditioning tenancy with sexual favors, constitutes a violation of Section 804(b) of the Fair Housing Act, 42 U.S.C. §3604(b).

8. The conduct described above of coercing, intimidating, threatening, and/or interfering with female tenants in the exercise or enjoyment of rights granted and protected by Section 804 of the Fair Housing Act, as amended, constitutes a violation of Section 818 of the Fair Housing Act, 42 U.S.C. §3617.

9. Defendant James Nedialkov knew or should have known of the discriminatory conduct of the defendant Gheorghi Nedialkov as described in paragraph 5 but refused to take action to curtail the discriminatory behavior of Gheorghi Nedialkov, in violation of 42 U.S.C. §3604(a) and (b) and §3617.

10. The conduct of the defendants described above constitutes:
    1. A pattern or practice of resistance to the full enjoyment of rights secured by Title VIiI of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988, 42 U.S.C. §3601 et seg., and

    2. A denial to a group of persons of rights granted by Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988, 42 U.S.C. §3601 et seg., which denial raises an issue of general public importance.

11. There are several victims of defendants' practices who were tenants of the property owned and managed by the defendants. These victims are aggrieved persons as defined in 42 U.S.C. §3602(i) and have suffered damages as a result of the defendants' conduct.

12. The defendants' conduct was intentional, willful, and taken in disregard for the rights of others.

WHEREFORE, the United States prays that the Court enter an ORDER that:

1. Declares that the discriminatory practices of defendants violate the Fair Housing Act, as amended, 42 U.S.C. §3601 et seg.,

2. Enjoins the defendants, their agents, employees, and successors, and all other persons in active concert or participation with them from:
   1. Discriminating on account of sex against any person in any aspect of the rental of a dwelling;

   2. Interfering with or threatening to take any action against any person in the exercise or enjoyment of rights granted or protected by the Fair Housing Act, as amended; and

   3. Failing or refusing to take such affirmative steps as may be necessary to (1) restore, as nearly as practicable, the victims of the defendants' past unlawful practices to the position they would have been in but for the discriminatory conduct; and (2) notify residents of their rental properties as well a's the public that the properties will be operated in a manner so as not to discriminate on the basis of sex;

3. Awards such damages as would fully compensate each identifiable victim of defendants' discriminatory housing practices for injuries caused by the defendants' discriminatory conduct, pursuant to 42 U.S.C. §3614(d)(1)(B);

4. Awards punitive damages to each identifiable victim of defendants' discriminatory housing practices, pursuant to 42 U.S.C. §3614(d)(1)(B); and

5. Assesses a civil penalty against the defendants in order to vindicate the public interest pursuant to 42 U.S.C. §3614(d)(1)(C).

The United States further prays for such additional relief as the interests of justice may require.

Document Filed: March 25, 1993.