Rent Controlled Apartments

Los Angeles, CA: (Mar-04-08) The city of Los Angeles brought a lawsuit against Darren Stern, a landlord, alleging that he engaged in a scheme to drive low income residents out of more than 800 rent controlled apartments. The suit stated that Stern, also known as Henry Shalom, bought high occupancy rent controlled buildings and then forced tenants out through squalid living conditions and intimidation. He evicted them, then raised rents and sold the buildings for an inflated profit. Stern was the owner of Landmark Equity Management, and was convicted in May 2007, after pleading no contest to nearly three dozen code violations. He served 30 days of a 150-day sentence.

In the city's lawsuit, sources stated that a settlement had been agreed upon, resolving the claims. As part of the settlement agreement, the Los Angeles landlord will pay $10 million to former tenants and the city; and over $105,000 to reimburse the city's investigative costs. Of the total payout, Stern will pay $1 million in civil penalties and an estimated $9 million in restitution to former tenants in several areas across greater Los Angeles. Additionally, Stern is barred from purchasing rental properties in Los Angeles for four years and six months. [CHICO ENTERPRISE-RECORD: RENT CONTROLLED APARTMENTS]

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Published on Mar-5-08