United States v. McGowan Realty, LLLC, d/b/a RedSail Property Management (E.D. Va.)
On January 8, 2024, the United States Attorney’s Office filed a complaint and proposed consent order in United States v. McGowan Realty, LLLC, d/b/a RedSail Property Management (E.D. Va.), a Servicemembers Civil Relief Act (SCRA) pattern or practice case. The complaint alleges that a property management company operating throughout Hampton Roads area in Northern Virginia refused to honor the residential lease termination of a U.S. Navy Petty Officer First Class and were assessing early lease termination charges and additional rent against him. RedSail allegedly erroneously insisted that the Virginia Residential Landlord and Tenant Act (VRLTA) placed a 35-mile limitation on a servicemember’s SCRA residential lease termination rights. The complaint alleges that the Petty Officer paid $3,408.55 in early termination charges and additional rent to RedSail, which placed a considerable financial burden on him. Under the proposed consent order, which still must be approved by the court, RedSail will pay $10,225.65 to the Petty Officer and a $3,000 civil penalty. The consent order also requires RedSail to provide SCRA training to its employees, develop new policies and procedures consistent with the SCRA, and refrain from imposing the VRLTA’s 35-mile limitation on servicemembers who lawfully terminate a lease under the SCRA.