An apartment management company in Maryland owned by Jared Kushner and his brother were found guilty of having violated numerous consumer laws in a longstanding case Kushner claimed was politically motivated, the Baltimore Sun reports.
Administrative Law Judge Emily Daneker found the violations “widespread and numerous,” and she determined that they were not politically motivated, but followed the laws and regulations applicable to any landlord in the state.
Westminster Management and a predecessor company, JK2, were owned by Kushner and his brother Joshua, who each owned 50% of the business. They were found to be in violation of collecting debts without the required licenses, charging tenants improper fees, and misrepresenting the condition of rental units.
Westminster rented units without proper licenses, making them illegal rentals. The judge also found that Westminster operated a “bait and switch” tactic by showing prospective tenants a renovated apartment but then placing them in a decrepit unit. In multiple cases, tenants complained about rodent infestations or mold which the management company did nothing to alleviate.
Westminster was also found to have used illegal tactics to add collection fees to late rental payments or to charge previous renters added fees. Maryland law allows for landlords to charge up to $25 to prospective tenants to process their applications; investigators found Westminster collected excess fees, from $35 to $50 to more than 15,000 consumers. The company also charged more than 18,000 potential renters “agent fees” amounting to more than $300,000.
The judge dismissed charges that Westminster misrepresented its maintenance capabilities and claims that some of the malfeasance happened over longer periods of time, which the Kushner’s claimed “vindicates” them.
“Kushner respects the thoughtful depth of the Judge’s decision, which vindicates Westminster with respect to many of the Attorney General’s overreaching allegations,” the Kushner Cos’. general counsel, Christopher W. Smith, said in a statement to The Baltimore Sun.
The parties have 30 days to appeal the decision to a civil court, after which the judge will mete out payments, penalties and restitution, which Maryland Attorney General Brian Frosh estimated would amount to millions of dollars.