United States v. PRG Real Estate Management (E.D. Va.)

On March 14, 2019, the Division and the United States Attorney’s Office filed a complaint in United States v. PRG Real Estate Management  (E.D. Va.).  On March 15, 2019, the parties entered into a settlement agreement to resolve the case.  The complaint alleges that PRG Real Estate Management, a property management company, and related entities, engaged in a pattern or practice of violating the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. 3931 and 3955, when they: (1) obtained default judgments against servicemember-tenants without filing an affidavit disclosing the tenant’s military status to the court; and (2) imposed early termination fees on servicemembers who terminated their leases pursuant to military orders.  Additional defendants are: Watergate/Treehouse Associates, L.P., Chanticleer Associates, L.P., New Colony Hilton Associates, L.P., Heritage Trace Apartments, LLC, PRG Ashton Creek Associates, LLC and New Hyde Park Associates, LLC. The settlement agreement requires the defendants to pay up to $1,490,000 to compensate 127 servicemembers who had unlawful default judgments entered against them and $34,920 to compensate 10 servicemembers who were charged early lease termination fees in violation of the SCRA.  Defendants will also pay a civil penalty of $62,029 to the United States.  In addition, the agreement requires credit repair, policy charges and monitoring for SCRA compliance.

Press Release (3/15/19)