The Justice Department announced that it has filed a lawsuit against Thomas Ray Kelso, the former owner and manager of rental properties formerly known as Briarwood Apartments in Searcy, Arkansas, for engaging in sexual harassment and retaliation in violation of the Fair Housing Act.
The lawsuit also names as a defendant Avatar Investments LLC, which owned the rental properties during Kelso’s management and sexual harassment of female tenants.
The lawsuit, filed in the U.S. District Court for the Eastern District of Arkansas, alleges that Kelso sexually harassed female tenants beginning in 2001, until his arrest, in 2023, and conviction for federal sex trafficking charges in 2025. According to the complaint, Kelso made repeated and unwelcome sexual comments to female tenants, touched female tenants’ bodies without their permission, requested sexual contact, offered reduced or free rent in exchange for sexual contact and took retaliatory actions against female tenants who refused his sexual advances, including threatening to cut electricity or denying laundry access.
“No one should have to endure sexual harassment to keep a roof over his or her head,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This lawsuit reinforces the Justice Department’s commitment to holding landlords and housing providers accountable for illegally harassing and retaliating against tenants.”
“This defendant intentionally lured and threatened vulnerable victims, forcing them to perform sexual acts in exchange for some of life’s essentials — shelter and electricity. He was rightfully sentenced to serve 20 years in federal prison,” said U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas. “Just as Kelso continues to be held accountable for his reprehensible acts, the housing provider, Avatar Investments, LLC, should also be held accountable for its total lack of oversight of its property.”
The lawsuit seeks monetary damages to compensate persons harmed by the alleged harassment, civil penalties to vindicate the public interest, and a court order barring future discrimination.
Source: Office of Public Affairs
Topics Lawsuits
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