Mar 4, 2008 12:40 pm US/Pacific
Landlord Ordered To Pay Tenants, Los Angeles $10M
LOS ANGELES
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Stern must pay former tenants and the city of Los Angeles $10 million.
CBS
A landlord who drove low-income tenants out of more than 800 rent-controlled apartments has been ordered to pay $10 million to former residents and the city of Los Angeles, the City Attorney's Office announced Tuesday.
Darren Stern, also known as Henry Shalom, purchased rent-controlled buildings with high occupancy rates and through harassment, intimidation and substandard living conditions, forced tenants to leave, City Attorney Rocky Delgadillo said.
The goal was to evict tenants, raise rents and then sell the buildings for an inflated profit.
"Stern and his affiliates engaged in dozens of violations of state law through a number of illegal and unfair practices, including allowing properties to fall into disrepair and failing to remedy serious and extensive code violations," Delgadillo said.
Stern, who owns Landmark Equity Management, will have to pay $1 million in civil penalties and an estimated $9 million in restitution to former tenants in the Los Feliz, Hollywood, North Hollywood, East Los Angeles and Panorama City areas. The management company is also required to pay $105,000 to reimburse the city's investigative costs.
Stern is barred from purchasing any rental properties in the city of Los Angeles for four years and six months. Through the agreement with the City Attorney's Office, Stern could pay less than the required $9 million if he sells his properties in the next two years.
He was convicted in May of 2007 and served 30 days of a 150-day sentence.
(© 2008 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)
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