A Moorestown Township Council Republican candidate’s real estate company entered into a settlement with the Justice Department in 2019 over reportedly getting illegal court judgments against active duty service members who were his renters. Because the renters were charged exorbitant lease termination fees, the company is to pay $1.6 million.
The PRG Real Estate Management CEO and township council seat candidate Samuel Foster was among the settlement’s signers after a complaint was filed by the Justice Department. As a result, Foster’s company had to disburse money to 127 military members who faced 152 unlawful court judgments that violated their rights under the Servicemembers Civil Relief Act (SCRA). Foster’s company has also been mandated to repair their credit.
This settlement came after an investigation by U.S. Navy legal assistance attorneys that revealed Foster’s company had won financial and eviction cases. The company didn’t disclose to the court that their tenants were active duty service members, making them eligible for SCRA protections.
To put things into perspective, the SCRA grants active duty service members and their dependents select legal and financial protections, including protection from eviction proceedings. Eviction can only push through if the plaintiff has secured a court order.
As a result, Foster said that his company has improved its training methods and now ensures it abides by SCRA rules. The Justice Department claimed this case saw the most enormous settlement ever obtained against a property management company or landlord.
Foster also shared that he doesn’t own buildings in New Jersey, and this error affected no more than 150 of his 30,000 tenants. His property manager in Virginia Beach made the call to proceed with evictions, not him.
Cases like this can be avoided if service members and real estate companies proactively confirm one’s military status. The SCRACVS makes it easier for everyone to prove one’s active duty status. Click here to sign up at SCRAVS and verify the active duty status.