Rental Bias Case Payments Ordered : Housing: An apartment building’s owners and manager must pay $100,000 in penalties.
The owners and manager of a Sherman Oaks apartment building have been ordered to pay $100,000 in penalties for discriminating against two prospective tenants because they were black.
Under a consent order issued in U. S. District Court in Los Angeles Tuesday, Iradj Rassekhi, Golriz Ghogeh and Jack Brandt must pay $45,000 to Yvonne Sims and $35,000 to Eliza Sledge, two apartment applicants who were turned down for units in the building. In addition, the three must pay $10,000 to the U. S. government and $10,000 to the Fair Housing Council of the San Fernando Valley.
They must also file reports to the government every six months, detailing their rental practices.
The order settles a lawsuit against the owners and manager that was filed by the civil rights division of the Justice Department in May, 1992. According to court documents, the three defendants did not admit guilt, but settled to avoid the time and expense of a trial.
“We believe this settlement . . . sends an important message that it is not only illegal to violate the fair housing laws, but also expensive,” said James P. Turner, acting assistant attorney general in charge of the civil rights division, in a news release.
The owners and manager of the building, located at 14658 Magnolia Blvd., lied to African-Americans who applied for apartments in the building, telling them that units were not available when they were, said Justice Department spokeswoman Obern Rainey.
In addition, she said, black applicants were offered more onerous rental terms than whites.
Rassekhi, who lives in Westlake Village, denied the charges of discrimination, saying that he rented regularly to African-Americans.
“We have a good record,” Rassekhi said. “We have several African-American tenants in our buildings and we have nothing against African-Americans.”
If anything inappropriate took place, Rassekhi said, it was the fault of the building manager, not the owners.
He also accused the government of heavy-handedness in the case, saying Justice Department officials filed suit before notifying him that there was a problem.
Rainey said she didn’t know what procedures had been followed in the case, but that the department routinely notifies owners that complaints have been filed against their buildings.
She said Justice Department employees known as “testers” went to the building and posed as apartment seekers. These testers, some African-American and some white, filed reports that discrimination had taken place.
The fair housing council, which filed the initial complaint about rentals at the apartment building, refused to comment.
